Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-35489 | |
Entity Registrant Name | Howard Bancorp Inc | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-3735949 | |
Entity Address, Address Line One | 3301 Boston Street | |
Entity Address, City or Town | Baltimore | |
Entity Address, Country | MD | |
Entity Address, Postal Zip Code | 21224 | |
City Area Code | 410 | |
Local Phone Number | 750-0020 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,742,300 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001390162 | |
Current Fiscal Year End Date | --12-31 | |
Trading Symbol | HBMD | |
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 12,652 | $ 12,992 |
Interest-bearing deposits with banks | 46,418 | 96,985 |
Total cash and cash equivalents | 59,070 | 109,977 |
Securities available for sale, at fair value | 276,889 | 215,505 |
Securities held to maturity, at amortized cost | 7,250 | 7,750 |
Nonmarketable equity securities | 12,592 | 14,152 |
Loans held for sale, at fair value | 0 | 30,710 |
Loans and leases, net of unearned income | 1,898,630 | 1,745,513 |
Allowance for credit losses | (16,356) | (10,401) |
Net loans and leases | 1,882,274 | 1,735,112 |
Bank premises and equipment, net | 42,434 | 42,724 |
Goodwill | 31,449 | 65,949 |
Core deposit intangible | 7,090 | 8,469 |
Bank owned life insurance | 76,716 | 75,830 |
Other real estate owned | 2,137 | 3,098 |
Deferred tax assets, net | 35,034 | 36,010 |
Interest receivable and other assets | 30,515 | 29,333 |
Total assets | 2,463,450 | 2,374,619 |
LIABILITIES | ||
Noninterest-bearing deposits | 671,598 | 468,975 |
Interest-bearing deposits | 1,159,076 | 1,245,390 |
Total deposits | 1,830,674 | 1,714,365 |
FHLB advances | 246,000 | 285,000 |
Customer repurchase agreements and other borrowings | 37,834 | 6,127 |
Subordinated debt | 28,339 | 28,241 |
Total borrowings | 312,173 | 319,368 |
Accrued expenses and other liabilities | 37,322 | 26,738 |
Total liabilities | 2,180,169 | 2,060,471 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock - par value of $0.01 authorized 20,000,000 shares; issued and outstanding 18,715,678 shares at June 30, 2020 and 19,066,913 at December 31, 2019 | 187 | 191 |
Capital surplus | 270,056 | 276,156 |
Retained earnings | 9,092 | 35,158 |
Accumulated other comprehensive income | 3,946 | 2,643 |
Total stockholders' equity | 283,281 | 314,148 |
Total liabilities and stockholders' equity | $ 2,463,450 | $ 2,374,619 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 18,715,678 | 19,066,913 |
Common stock, shares outstanding | 18,715,678 | 19,066,913 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME | ||||
Interest and fees on loans and leases | $ 19,553 | $ 21,131 | $ 39,697 | $ 41,697 |
Interest and dividends on securities | 1,901 | 1,740 | 3,749 | 3,596 |
Other interest income | 20 | 274 | 254 | 636 |
Total interest income | 21,474 | 23,145 | 43,700 | 45,929 |
INTEREST EXPENSE | ||||
Deposits | 2,383 | 4,004 | 5,593 | 7,568 |
FHLB advances | 506 | 1,295 | 1,532 | 2,549 |
Customer repurchase agreements and other borrowings | 13 | 13 | 17 | 26 |
Subordinated debt | 452 | 479 | 913 | 958 |
Total interest expense | 3,354 | 5,791 | 8,055 | 11,101 |
NET INTEREST INCOME | 18,120 | 17,354 | 35,645 | 34,828 |
Provision for credit losses | 3,000 | 1,110 | 6,445 | 2,835 |
Net interest income after provision for credit losses | 15,120 | 16,244 | 29,200 | 31,993 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 432 | 684 | 1,075 | 1,311 |
Realized and unrealized gains on mortgage banking activity | 0 | 2,308 | 1,036 | 3,793 |
Gain on the sale of securities | 3,044 | 658 | 3,044 | 658 |
Gain (loss) on the disposal of bank premises & equipment | 6 | (83) | 6 | (83) |
Income from bank owned life insurance | 441 | 460 | 886 | 907 |
Loan related fees and service charges | 175 | 995 | 755 | 2,038 |
Other operating income | 661 | 819 | 1,323 | 1,752 |
Total noninterest income | 4,759 | 5,841 | 8,125 | 10,376 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 6,259 | 8,272 | 14,700 | 16,306 |
Occupancy and equipment | 1,242 | 5,183 | 2,275 | 6,754 |
Marketing and business development | 453 | 484 | 903 | 941 |
Professional fees | 634 | 718 | 1,360 | 1,503 |
Data processing fees | 849 | 1,147 | 1,776 | 2,525 |
FDIC assessment | 287 | 281 | 499 | 568 |
Other real estate owned | 268 | 104 | 346 | 131 |
Loan production expense | 192 | 700 | 660 | 1,220 |
Amortization of core deposit intangible | 680 | 767 | 1,379 | 1,551 |
Goodwill impairment | 34,500 | 0 | 34,500 | 0 |
Other operating expense | 2,264 | 1,798 | 3,789 | 2,812 |
Total noninterest expense | 47,628 | 19,454 | 62,187 | 34,311 |
(LOSS) INCOME BEFORE INCOME TAXES | (27,749) | 2,631 | (24,862) | 8,058 |
Income tax expense | 1,660 | 543 | 1,204 | 1,714 |
NET (LOSS) INCOME | $ (29,409) | $ 2,088 | $ (26,066) | $ 6,344 |
NET (LOSS) INCOME PER COMMON SHARE | ||||
Basic | $ (1.57) | $ 0.11 | $ (1.39) | $ 0.33 |
Diluted | $ (1.57) | $ 0.11 | $ (1.39) | $ 0.33 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive (Loss) Income | ||||
Net (loss) income | $ (29,409) | $ 2,088 | $ (26,066) | $ 6,344 |
Other comprehensive income (loss) Investments available-for-sale: | ||||
Reclassification adjustment for realized gain | (3,044) | (658) | (3,044) | (658) |
Related income tax | 838 | 180 | 838 | 180 |
Unrealized holding gains (losses) | (828) | 1,790 | 4,841 | 3,590 |
Related income tax (expense) benefit | 228 | (492) | (1,332) | (988) |
Comprehensive (loss) income | $ (32,215) | $ 2,908 | $ (24,763) | $ 8,468 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common stock | Capital surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total |
Balance at Dec. 31, 2018 | $ 190,000 | $ 275,843,000 | $ 18,277,000 | $ 373,000 | $ 294,683,000 |
Balance (in shares) at Dec. 31, 2018 | 19,039,347 | ||||
Net (loss) income | $ 0 | 0 | 6,344,000 | 0 | 6,344,000 |
Other comprehensive income (loss) | 0 | 0 | 0 | 2,124,000 | 2,124,000 |
Director stock awards | $ 0 | 62,000 | 0 | 0 | 62,000 |
Director stock awards (in shares) | 4,802 | ||||
Exercise of options | $ 1,000 | 104,000 | 0 | 0 | 105,000 |
Exercise of options (in shares) | 12,149 | ||||
Employee stock purchase plan | $ 0 | 97,000 | 0 | 0 | 97,000 |
Employee stock purchase plan (in shares) | 6,782 | ||||
Stock-based compensation | $ 0 | 112,000 | 0 | 0 | 112,000 |
Stock-based compensation (in shares) | 0 | ||||
Balance at Jun. 30, 2019 | $ 191,000 | 276,218,000 | 24,621,000 | 2,497,000 | 303,527,000 |
Balance (in shares) at Jun. 30, 2019 | 19,063,080 | ||||
Balance at Mar. 31, 2019 | $ 191,000 | 276,128,000 | 22,533,000 | 1,677,000 | 300,529,000 |
Balance (in shares) at Mar. 31, 2019 | 19,059,485 | ||||
Net (loss) income | $ 0 | 0 | 2,088,000 | 0 | 2,088,000 |
Other comprehensive income (loss) | 0 | 0 | 0 | 820,000 | 820,000 |
Exercise of options | $ 0 | 28,000 | 0 | 0 | 28,000 |
Exercise of options (in shares) | 3,595 | ||||
Stock-based compensation | $ 0 | 62,000 | 0 | 0 | 62,000 |
Balance at Jun. 30, 2019 | $ 191,000 | 276,218,000 | 24,621,000 | 2,497,000 | 303,527,000 |
Balance (in shares) at Jun. 30, 2019 | 19,063,080 | ||||
Balance at Dec. 31, 2019 | $ 191,000 | 276,156,000 | 35,158,000 | 2,643,000 | 314,148,000 |
Balance (in shares) at Dec. 31, 2019 | 19,066,913 | ||||
Net (loss) income | $ 0 | 0 | (26,066,000) | 0 | (26,066,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | 1,303,000 | 1,303,000 |
Director stock awards | $ 0 | 137,000 | 0 | 0 | 137,000 |
Director stock awards (in shares) | 8,151 | ||||
Employee stock purchase plan | $ 0 | 195,000 | 0 | 0 | 195,000 |
Employee stock purchase plan (in shares) | 12,581 | ||||
Repurchased shares | $ (4,000) | (6,673,000) | 0 | 0 | (6,677,000) |
Repurchased shares (in shares) | (372,801) | ||||
Stock-based compensation | $ 0 | 241,000 | 0 | 0 | 241,000 |
Stock-based compensation (in shares) | 834 | ||||
Balance at Jun. 30, 2020 | $ 187,000 | 270,056,000 | 9,092,000 | 3,946,000 | 283,281,000 |
Balance (in shares) at Jun. 30, 2020 | 18,715,678 | ||||
Balance at Mar. 31, 2020 | $ 187,000 | 269,918,000 | 38,501,000 | 6,752,000 | 315,358,000 |
Balance (in shares) at Mar. 31, 2020 | 18,714,844 | ||||
Net (loss) income | $ 0 | 0 | (29,409,000) | 0 | (29,409,000) |
Other comprehensive income (loss) | 0 | 0 | 0 | (2,806,000) | (2,806,000) |
Stock-based compensation | $ 0 | 138,000 | 0 | 0 | 138,000 |
Stock-based compensation (in shares) | 834 | ||||
Balance at Jun. 30, 2020 | $ 187,000 | $ 270,056,000 | $ 9,092,000 | $ 3,946,000 | $ 283,281,000 |
Balance (in shares) at Jun. 30, 2020 | 18,715,678 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (26,066) | $ 6,344 |
Adjustments to reconcile net (loss) income to net cash from operating activities: | ||
Provision for credit losses | 6,445 | 2,835 |
Deferred income tax | 481 | 1,422 |
Provision for other real estate owned | 257 | 65 |
Depreciation and amortization | 1,108 | 1,209 |
Stock-based compensation | 378 | 112 |
Net accretion of discount on purchased loans | (590) | (925) |
Gain on sale of securities | (3,044) | (658) |
(Gain) loss on the sale of premises and equipment | (6) | 83 |
Net amortization of intangible asset | 1,379 | 1,551 |
Goodwill impairment | 34,500 | 0 |
Loans originated for sale | (79,847) | (259,868) |
Proceeds from sale of loans originated for sale | 111,593 | 247,241 |
Realized and unrealized gains on mortgage banking activity | (1,036) | (3,793) |
Loss on sale of other real estate owned, net | 28 | |
Cash surrender value of BOLI | (886) | (907) |
Decrease in interest receivable and other assets | 4,046 | 2,794 |
Increase in accrued expenses and other liabilities | (1,666) | 959 |
Other - net | 31 | 14 |
Net cash provided by (used in) operating activities | 47,105 | (1,522) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investment securities | (179,695) | (6,502) |
Proceeds from sales, maturities and calls of investment securities | 130,815 | 81,159 |
Net increase in loans and leases outstanding | (153,067) | (54,308) |
Proceeds from the sale of other real estate owned | 727 | 0 |
Purchase of premises and equipment | (69) | (422) |
Proceeds from the sale of premises and equipment | 743 | 1,392 |
Net cash (used in) provided by investing activities | (200,546) | 21,319 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in deposits | 116,309 | 31,410 |
Net increase (decrease) customer repurchase agreements and other borrowings | 31,707 | (11,907) |
Net increase in FHLB advances | (39,000) | (16,000) |
Proceeds from issuance of common stock, net of cost | 195 | 263 |
Repurchase of common stock | (6,677) | 0 |
Net cash provided by financing activities | 102,534 | 3,766 |
Net (decrease) increase in cash and cash equivalents | (50,907) | 23,563 |
Cash and cash equivalents at beginning of period | 109,977 | 101,498 |
Cash and cash equivalents at end of period | 59,070 | 125,061 |
SUPPLEMENTAL INFORMATION | ||
Cash payments for interest | 8,103 | 11,070 |
Cash payments for income taxes | 15 | 0 |
Transferred from loans to other real estate owned | 51 | 375 |
Cash payments for operating leases | 441 | 785 |
Lease liabilities arising from obtaining right of use assets (see Note 8) | 2,011 | 15,183 |
Liability for unsettled securities purchases | $ 10,238 | 0 |
Goodwill reduction for adjustments to acquired net deferred tax assets | $ 4,748 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies Nature of Operations Howard Bancorp, Inc. (“Bancorp” or the “Company”) was incorporated in April 2005 under the laws of the State of Maryland. On December 15, 2005, Bancorp acquired all of the stock of Howard Bank (the “Bank”) pursuant to the Plan of Reorganization approved by the stockholders of the Bank and by federal and state regulatory agencies. Each share of the Bank’s common stock was converted into two shares of Bancorp common stock effected by the filing of Articles of Exchange on that date, and the stockholders of the Bank became the stockholders of Bancorp. Bancorp is now a bank holding company registered under the Bank Holding Company Act of 1956, with a single bank subsidiary, Howard Bank, which operates as a state trust company with commercial banking powers regulated by the Maryland Office of the Commissioner of Financial Regulation (the “Commissioner”). The Bank has nine subsidiaries—six were formed to hold foreclosed real estate (three of which are currently inactive), two own and manage real estate used for corporate purposes, and one holds historic tax credit investments. The Company is a diversified financial services company providing commercial banking and consumer finance through banking branches, the internet and other distribution channels to businesses, business owners, professionals and other consumers located primarily in the Greater Baltimore Metropolitan Area. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2019 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2020. There have been no significant changes to the Company’s accounting policies as disclosed in the 2019 Annual Report on Form 10-K. The following is a description of the Company’s significant accounting policies. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. Principles of Consolidation The consolidated financial statements include the accounts of Bancorp, the Bank and the Bank’s subsidiaries. All significant intercompany accounts and transactions have been eliminated. The parent company only financial statements report investments in the Bank under the equity method. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, goodwill, deferred tax assets, other-than-temporary impairment of investment securities and the fair value of loans held for sale. Allowance for Credit Losses The allowance for credit losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan and lease portfolio and is based on the size and current risk characteristics of the loan and lease portfolio, an assessment of individual problem loans and leases, actual loss experience, current economic events in specific industries and geographic areas including unemployment levels and other pertinent factors including general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans and leases, estimated losses on pools of homogenous loans and leases based on historical loss experience and consideration of economic trends, all of which may be susceptible to significant change. Credit losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance for credit losses consists of a specific component and a nonspecific component. The components of the allowance for credit losses represent an estimation done pursuant to either the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 450 Contingencies or ASC Topic 310 Receivables . The specific component of the allowance for credit losses reflects expected losses resulting from analysis developed through credit allocations for individual loans and leases. The credit allocations are based on a regular analysis of all loans and leases over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. The specific component of the allowance for credit losses also includes management’s determination of the amounts necessary given concentrations and changes in portfolio mix and volume. The nonspecific portion of the allowance is determined based on management’s assessment of general economic conditions, as well as economic factors in the individual markets in which the Company operates including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. This determination inherently involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in the Bank’s historical loss factors used to determine the nonspecific component of the allowance, and it recognizes that knowledge of the portfolio may be incomplete. The Bank’s historic loss factors are based upon actual losses incurred by portfolio segment over the preceding 24-month period. In portfolio segments where no actual losses have been incurred within the most recent 24-month period, industry loss data for that portfolio segment, as provided by the Federal Deposit Insurance Corporation (“FDIC”), are utilized. In addition to historic loss factors, the Bank’s methodology for the allowance for credit losses incorporates other risk factors that may be inherent within the portfolio segments. For each portfolio segment, in addition to the historic loss experience, the qualitative factors that are measured and monitored in the overall determination of the allowance include: ● changes in lending policies, procedures, and practices; ● changes in international, national, state and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments; ● changes in the nature and volume of the loan portfolio; ● changes in the experience, ability and depth of the lending staff; ● changes in the volume and severity of past due, nonaccrual, and adversely classified loans; ● changes in the quality of our loan review system; ● changes in the value of underlying collateral for collateral-dependent loans; ● the existence of any concentrations of credit, and changes in the level of such concentrations; ● the effect of other external factors such as competition and legal and regulatory requirements; and ● any other factors that management considers relevant to the quality or performance of the loan portfolio. Each of these qualitative risk factors is measured based upon data generated either internally, or in the case of economic conditions utilizing independently provided data on items such as unemployment rates, commercial real estate vacancy rates, or other market data deemed relevant to the business conditions within the markets served. The Company’s loan and lease policies state that after all collection efforts have been exhausted, and the loan or lease is deemed to be a loss, then the remaining loan or lease balance will be charged to the Company’s established allowance for credit losses. All loans and leases are evaluated for loss potential once it has been determined by the Watch Committee that the likelihood of repayment is in doubt. When a loan is past due for at least 90 days or a deterioration in debt service coverage ratio, guarantor liquidity, or loan-to-value ratio has occurred that would cause concern regarding the likelihood of the full repayment of principal and interest, and the loan or lease is deemed not to be well secured, the loan or lease would be moved to non-accrual status and a specific reserve is established if the net realizable value is less than the principal value of the loan balance(s). Once the actual loss value has been determined, a charge-off against the allowance for credit losses for the amount of the loss is taken. Each loss is evaluated on its specific facts regarding the appropriate timing to recognize the loss. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition, and accordingly, no allowance for loan losses is transferred to the acquiring entity under the acquisition method. The fair values of loans with evidence of credit deterioration (acquired credit impaired loans) are initially recorded at fair value, but thereafter accounted for differently than purchased, non-credit-impaired loans. For acquired credit impaired loans, the excess of all cash flows estimated to be collectable at the date of acquisition over the initial investment in the acquired credit impaired loan is recognized as interest income, using a level-yield basis over the life of the loan. This amount is referred to as the accretable yield. The acquired credit impaired loan’s contractually-required payments receivable estimated to be in excess of the amount of its future cash flows expected at the date of acquisition is referred to as the non-accretable difference, and is not reflected as an adjustment to the yield, but in the form of a loss accrual or a valuation allowance. Subsequent to the acquisition date, management continues to monitor cash flows on a quarterly basis, to determine the performance of each acquired credit impaired loan in comparison to management’s initial performance expectations. Subsequent decreases in the present value of expected cash flows will be recorded as an increase in the allowance for credit losses through a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions or a reclassification of amount from non-accretable difference to accretable yield, with a positive impact on the accretion of interest income in future periods. Goodwill, Other Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination. The core deposit intangible is amortized over the estimated useful lives of the long-term deposits acquired, and the remaining amounts of the core deposit intangible are periodically reviewed for impairment. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. Long-lived assets are those that provide the Company with a future economic benefit beyond the current year or operating period. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is greater than the fair value of the asset. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell. Effective April 1, 2020, the Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, Management has determined that the Company has one reporting unit. The sudden and continuing decline in economic conditions triggered by the Coronavirus ("COVID-19") pandemic included a significant decline in stock market valuations and the stock price of the Company and peer banks. These events indicated that goodwill may be impaired and resulted in us performing a goodwill impairment assessment. As a result, a goodwill impairment charge of $34.5 million was recorded as the Company's estimated fair value was less than its book value. Income Taxes The Company uses the asset/liability method of accounting for income taxes. Under the asset/liability method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities (i.e., temporary differences) and are measured at the enacted rates that will be in effect when these differences reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In addition, deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes in other noninterest expenses. The Company remains subject to examination by federal and state taxing authorities for income tax returns for the years ending after December 31, 2015. Share-Based Compensation Compensation cost is recognized for stock options and restricted stock issued to directors and employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. When an award is granted to an employee who is retirement eligible, the compensation cost of these awards is recognized over the period up to when the director or employee first becomes eligible to retire. Compensation expense for non-vested common stock awards is based on the fair value of the awards, which is generally the market price of the common stock on the measurement date, which, for the Company, is the date of grant, and is recognized ratably over the service period of the award. Reclassifications Certain reclassifications to prior financial presentation were made to conform to the 2020 presentation. These reclassifications did not affect previously reported net income or total stockholders’ equity. Recent Accounting Pronouncements The FASB has issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The FASB has issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). This ASU amends the effective date of the credit loss standard (ASU 2016-13) for smaller reporting companies, as defined by the SEC. The one-time determination of whether an entity is eligible to be a smaller reporting company is based on an entity’s most recent determination as of November 15, 2019, in accordance with SEC regulations. The Company met this definition of smaller reporting company based on its most recent determination as of November 15, 2019. As a result, the effective date of this ASU for the Company has been amended from fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, to fiscal years beginning after December 31, 2022, and interim periods within those fiscal years. In addition, this ASU amended the mandatory effective date for the elimination of Step 2 from the goodwill impairment test (ASU 2017-04 discussed below). As a smaller reporting company, the effective date of the goodwill impairment standard for the Company has been amended from fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, to fiscal years beginning after December 31, 2022, and interim periods within those fiscal years. The FASB has issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The FASB has issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). COVID-19 Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID-19) surfaced in China, and has since spread to many other countries, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. In response to the COVID-19 pandemic, the State of Maryland and most other states took preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that were deemed to be non-essential. Although many businesses have begun to reopen, some states, including Maryland, have since experienced a resurgence of COVID-19 cases, which may further slow overall economic activity and recovery. Uncertainty also remains regarding if, how and when schools will reopen and the impact of such reopening decisions on the economy. The impact of the COVID-19 pandemic is fluid and continues to evolve. The unprecedented and rapid spread of COVID-19 and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets. In addition, due to the COVID-19 pandemic, market interest rates have declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time, and declining further to 0.65% as of June 30, 2020. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 |
Exit of Mortgage Banking Activi
Exit of Mortgage Banking Activities | 6 Months Ended |
Jun. 30, 2020 | |
Exit of Mortgage Banking Activities | |
Exit of Mortgage Banking Activities | Note 2: Exit of Mortgage Banking Activities On December 18, 2019, the Company entered into an agreement to release certain management members of the mortgage division from their employment contracts and allow those individuals to create a limited liability company (“LLC”) for the purpose of hiring all remaining mortgage employees. The Company also agreed to transfer ownership of the domain name “VAmortgage.com” to the newly created LLC. In consideration of the release of the employment agreements, the transfer of the mortgage employees, and the sale of the domain name, the LLC paid the Company $750 thousand. Under the agreement, there was a transition period of approximately 45 days, after which the Company agreed to cease originating residential first lien mortgage loans and exit all mortgage banking activities. Accordingly, all of the residential first lien mortgage pipeline loans were processed by the end of the first quarter of 2020 and the remaining loans held for sale were sold during the second quarter of 2020. In order to manage loan run-off within the residential mortgage loan portfolio, the Company plans on buying first lien residential mortgage loans, on a servicing released basis, from both the LLC and other third-party originators. The following table presents a roll forward of loans held for sale, showing loans originated for sale and loans sold into the secondary market, for the periods ended June 30, 2020 and, December 31, 2019. In addition, the volume of loans originated for the Company’s loan portfolio as well as a statement of operations for the mortgage banking activities for the same periods is presented. Since the mortgage banking activities were conducted within a division of the Bank, formal financial statements were not prepared. The statement of operations presented below reflects only the direct costs associated with the Company’s mortgage banking activities and is thus representative of the incremental after tax impact of exiting this activity. (in thousands) June 30, 2020 December 31, 2019 Loans held for sale, January 1 $ 30,710 $ 21,261 Loans originated for sale 79,847 573,306 Loans sold into the secondary market (110,557) (563,857) Loans held for sale, at end of period $ — $ 30,710 Loans originated for the Bank's portfolio $ 11,378 $ 114,561 For the six months ended June 30, For the three months ended June 30, ($ in thousands) 2020 2019 2020 2019 Statement of Operations: Net interest income $ 143 $ 340 $ — $ 193 Realized and unrealized gains on mortgage banking activity 1,036 3,737 — 2,296 Loan related fees and service charges 389 1,320 — 816 Total noninterest income 1,425 5,057 — 3,112 Salaries and benefits 928 3,063 — 1,456 Occupancy 20 154 — 75 All other operating expenses 490 1,050 — 582 Total noninterest expense 1,438 4,267 — 2,113 Pretax contribution 130 1,130 — 1,192 Income tax expense 36 311 — 328 After tax contribution $ 94 $ 819 $ — $ 864 Since the Bank's 91 employees that were engaged in mortgage banking activities were hired by the LLC under the terms of the agreement, no severance costs were recorded. However, in the fourth quarter of 2019, the Company recorded $288 thousand of exit costs associated with change in control and retention agreements. Back office employees remained with the bank for a portion of the first quarter in order to process the pipeline. The LLC is subleasing the office space that was used by these employees; therefore, no exit costs associated with lease terminations were required. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities | |
Investment Securities | Note 3: Investment Securities The Bank holds securities classified as available for sale and held to maturity. The amortized cost and estimated fair values of investments are as follows: (in thousands) June 30, 2020 December 31, 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available for sale U.S. Government Agencies $ 77,835 $ 1,780 $ — $ 79,615 $ 66,428 $ 963 $ 79 $ 67,312 Mortgage-backed 188,099 4,029 302 191,826 139,918 2,848 67 142,699 Other investments 5,509 13 74 5,448 5,510 4 20 5,494 $ 271,443 $ 5,822 $ 376 $ 276,889 $ 211,856 $ 3,815 $ 166 $ 215,505 Held to maturity Corporate debentures $ 7,250 $ 65 $ 120 $ 7,195 $ 7,750 $ 147 $ - $ 7,897 Gross unrealized losses and fair value by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019 are presented below: June 30, 2020 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ — $ — $ — $ — $ — $ — Mortgage-backed 106,747 302 — — 106,747 302 Other investments 1,444 56 2,991 18 4,435 74 $ 108,191 $ 358 $ 2,991 $ 18 $ 111,182 $ 376 Held to maturity Corporate debentures $ 880 $ 120 $ — $ — $ 880 $ 120 December 31, 2019 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ 10,689 $ 79 $ - $ - $ 10,689 $ 79 Mortgage-backed 35,512 60 975 7 36,487 67 Other investments - - 2,990 20 2,990 20 $ 46,201 $ 139 $ 3,965 $ 27 $ 50,166 $ 166 Held to maturity Corporate debentures $ - $ - $ - $ - $ - $ - The unrealized losses that existed were a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include the (1) duration and magnitude of the decline in value, (2) financial condition of the issuer or issuers and (3) structure of the security. The Company had 22 securities in the portfolio with unrealized losses at June 30, 2020 compared to 15 at December 31, 2019. An impairment loss is recognized in earnings if any of the following are true: (1) the Company intends to sell the debt security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Company intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in stockholders’ equity as a component of other comprehensive income, net of deferred tax. The amortized cost and estimated fair values of available for sale and held to maturity securities by contractual maturity are shown below: (in thousands) June 30, 2020 December 31, 2019 Amortized Estimated Fair Amortized Estimated Fair Cost Value Cost Value Amounts maturing: One year or less $ 5,535 $ 5,634 $ 1,497 $ 1,500 After one through five years 46,780 48,337 49,166 50,048 After five through ten years 34,529 34,883 33,576 33,915 After ten years 191,849 195,230 135,367 137,939 $ 278,693 $ 284,084 $ 219,606 $ 223,402 At June 30, 2020 and December 31, 2019, $99.7 million and $11.6 million in fair value of securities, respectively, were pledged as collateral. These securities were pledged at the Federal Reserve’s Discount Window as well as for repurchase agreements and deposits of local government entities that require pledged collateral as a condition of maintaining these deposit accounts. No single issuer of securities, except for government agency and mortgage backed securities, had outstanding balances that exceeded ten percent of stockholders’ equity at June 30, 2020. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Leases | |
Loans and Leases | Note 4: Loans and Leases The Company makes loans and leases to customers primarily in the Greater Baltimore Metropolitan Area and surrounding communities. A substantial portion of the Company’s loan portfolio consists of loans to businesses secured by real estate and/or other business assets. The loan portfolio segment balances at June 30, 2020 and December 31, 2019 are presented in the following table: June 30, 2020 December 31, 2019 % of % of (in thousands) Total Total Total Total Real estate Construction and land $ 128,567 6.8 % $ 128,285 7.3 % Residential - first lien 409,402 21.6 437,409 25.1 Residential - junior lien 67,430 3.6 74,164 4.2 Total residential real estate 476,832 25.1 511,573 29.3 Commercial - owner occupied 244,802 12.9 241,795 13.9 Commercial - non-owner occupied 455,051 24.0 444,052 25.4 Total commercial real estate 699,853 36.9 685,847 39.3 Total real estate loans 1,305,252 68.7 1,325,705 75.9 Commercial loans and leases 1 352,999 18.6 372,872 21.4 Consumer 46,660 2.5 46,936 2.7 Paycheck Protection Program 193,719 10.2 — — Total loans and leases $ 1,898,630 100.0 % $ 1,745,513 100.0 % 1 Includes leases of $4,949 and $6,382 at June 30, 2020 and December 31, 2019, respectively. The Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) was established under the Coronavirus Aid, Relief and Economic Security Act (“CARES” Act). On March 27, 2020, the CARES Act was signed into law, providing, financial relief and funding opportunities for small businesses under the SBA’s PPP program from approved SBA lenders. In response to the COVID-19 pandemic, the Bank, a SBA lender, has actively assisted its qualified customers with applications and lending through this program, as amended by subsequent legislation. During the quarter ended June 30, 2020, the Bank funded 1,028 loans totaling $199.0 million; net of unamortized deferred fees and origination costs, PPP loans totaled $193.7 million at June 30, 2020. Loans funded through the PPP program are fully guaranteed by the U.S. government and the Company anticipates that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. Net loan origination fees, which are included in the amounts in the table above, totaled $3.9 million and $1.3 million at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020, net loan origination fees attributable to PPP loans totaled $5.3 million, consisting of unamortized processing fees of $6.0 million and $0.7 million in unamortized loan origination costs. Acquired Credit Impaired Loans The following table documents changes in the accretable discount on acquired credit impaired loans at: For the six months ended For the three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 689 $ 877 $ 673 $ 835 Impaired loans acquired — — — — Accretion of fair value discounts (115) (110) (99) (68) Balance at end of period $ 574 $ 767 $ 574 $ 767 The table below presents the outstanding balances and related carrying amounts for all acquired credit impaired loans at the end of the respective periods: Contractually Required Payments Carrying (in thousands) Receivable Amount At June 30, 2020 $ 8,670 $ 6,993 At December 31, 2019 10,929 8,706 |
Credit Quality Assessment
Credit Quality Assessment | 6 Months Ended |
Jun. 30, 2020 | |
Credit Quality Assessment | |
Credit Quality Assessment | Note 5: Credit Quality Assessment Allowance for Credit Losses Summary information on the allowance for credit loss activity for the period indicated is presented in the following table: For the six months ended For the three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning balance $ 10,401 $ 9,873 $ 13,384 $ 8,754 Charge-offs (614) (3,728) (31) (874) Recoveries 124 140 3 130 Net charge-offs (490) (3,588) (28) (744) Provision for credit losses 6,445 2,835 3,000 1,110 Ending balance $ 16,356 $ 9,120 $ 16,356 $ 9,120 The June 30, 2020 allowance reflects the Company’s assessment of the impact of COVID-19 on the national and local economies and the impact on various categories of our loan portfolio. Management’s approach to COVID-19 and the evaluation of the allowance considered the following: (1) any change in historical loss rates resulting from COVID-19; (2) any risk rating downgrades related to COVID-19; and (3) any changes to collateral valuations or cash flow assumptions for impaired loans. Based on this review, the Company determined that some risk rating downgrades had occurred and were factored into the quantitative allowance at June 30, 2020. The Company then reviewed its qualitative factors and identified three factors that warranted further evaluation: ● Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments; ● The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and ● Changes in the value of underlying collateral for collateral-dependent loans. The Company’s evaluation of changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments, considered the abrupt slowdown in commercial economic activity resulting from actions announced by the State of Maryland between the March 5 disclosure of the first confirmed cases of COVID-19 in the state and the March 23 executive order closing all non-essential businesses in the state. In addition, management considered the dramatic rise in the unemployment rate in the Company’s market area. Based on U.S. Department of Labor weekly initial unemployment claims by state, management noted that the average weekly initial unemployment claims for the State of Maryland during the two weeks ending March 28, 2020 were 19 times higher than the average weekly claims for the first eleven weeks of 2020. While the rate of change in average weekly initial unemployment claims slowed during the second quarter of 2020, they were still 13 times higher than the average weekly claims for the first eleven weeks of 2020. While the Maryland economy has substantially reopened, the decline in economic activity during the second quarter and the heightened risk of setbacks in the pace of reopening the economy resulted in an increase in this qualitative factor applied to all loan portfolio categories. The Company also evaluated the existence and effect of any concentrations of credit, and changes in the level of such concentrations. Management performed an analysis of the loan portfolio to identify the Company’s exposure to industry segments that may potentially be the most highly impacted by COVID-19. Based on this evaluation, the following table identifies those industry segments within the Company’s loan portfolio that management believes may potentially be most highly impacted by COVID-19. Loan balances and total credit exposures are as of June 30, 2020 while the modification and PPP loan balances are as of July 24, 2020; note that the column “SBA PPP Loan Relief” indicates the amount of PPP loans received by the Company’s borrowers in each of the identified loan segments. As % of As % of Balance As % of As % of ($in millions) Loan Total Total Total with Total SBA PPP Loans Loan Category Balance Loans Exposure (1) Exposure Modifications Category Loan Relief Category CRE - retail $ 109.1 5.7 % $ 109.1 4.8 % $ 27.2 24.9 % $ — 0.0 % Hotels 60.8 3.2 % 62.8 2.8 % 52.7 86.6 % 1.5 2.5 % CRE - residential rental 47.8 2.5 % 47.8 2.1 % 8.8 18.4 % — 0.0 % Nursing and residential care 39.7 2.1 % 44.8 2.0 % 2.5 6.4 % 2.2 5.6 % Retail trade 23.6 1.2 % 38.3 1.7 % 2.1 8.9 % 12.9 54.7 % Restaurants and caterers 28.4 1.5 % 32.0 1.4 % 19.5 68.5 % 14.7 51.6 % Religious and similar organizations 29.1 1.5 % 31.1 1.4 % 3.3 11.4 % 6.1 20.8 % Arts, entertainment, and recreation 15.0 0.8 % 17.6 0.8 % 7.5 49.9 % 3.2 21.0 % Total - selected categories $ 353.6 18.6 % $ 383.5 17.0 % $ 123.6 35.0 % $ 40.5 11.5 % (1) Includes unused lines of credit, unfunded commitments, and letters of credit The breakdown by loan portfolio segment is as follows: As % of As % of ($ in millions) Loan Total Total "High Loan Portfolio Segment Balance Loans Impacts" Commercial real estate - non-owner occupied $ 206.9 10.9 % 58.5 % Commercial real estate - owner occupied 65.4 3.4 % 18.5 % Construction and land 51.9 2.7 % 14.7 % Commercial loans and leases 28.7 1.5 % 8.1 % Other 0.6 — % 0.2 % Total $ 353.6 18.6 % 100.0 % The potentially highly impacted loan exposures noted in the above tables (the “high impacts”) were concentrated in non-owner-occupied commercial real estate (58.5% of total high impacts), owner-occupied commercial real estate (18.5% of total high impacts), construction and land (14.7% of total high impacts), and commercial loans (8.1% of total high impacts). An increase in this qualitative factor was applied to these high impact loan portfolio categories. The Company’s evaluation of potential changes in the value of underlying collateral for collateral-dependent loans considered the potential impact of the economic fallout from COVID-19 on commercial property values due to rent relief and possible business failures resulting in vacancies. In addition, the need for office space may diminish in the future as work from home policies have allowed much office-oriented business activity to continue. Excluding the high impact portfolios, management concluded that 55% of the Company’s non-owner-occupied commercial real estate portfolio was not included in the high impact exposure. An increase in this qualitative factor was applied to the Company’s non-owner-occupied commercial real estate portfolio. Loans funded through the PPP program are fully guaranteed by the U.S. government and the Company anticipates that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. Therefore, no allowance for credit losses is attributable to this loan portfolio segment. The following table provides information on the activity in the allowance for credit losses by the respective loan portfolio segment for the six and three months ended June 30, 2020 and 2019 and the year ended December 31, 2019: At June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Allowance for credit losses: Six months ended: Beginning balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ — $ 10,401 Charge-offs — (33) — — (23) (549) (9) — (614) Recoveries — 3 52 — — 67 2 — 124 Provision for credit losses 269 488 394 1,018 2,645 1,435 196 — 6,445 Ending balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Three months ended: Beginning balance $ 1,192 $ 2,204 $ 863 $ 1,254 $ 4,130 $ 2,950 $ 791 $ — $ 13,384 Charge-offs — — — — (23) — (8) — (31) Recoveries — — 1 — — 1 1 — 3 Provision for credit losses 333 510 60 552 1,483 105 (43) — 3,000 Ending balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Loans and leases: Ending balance $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 individually evaluated for impairment $ 347 $ 13,679 $ 1,365 $ 800 $ 576 $ 1,619 $ 102 $ — $ 18,488 collectively evaluated for impairment $ 128,220 $ 395,723 $ 66,065 $ 244,002 $ 454,475 $ 351,380 $ 46,558 $ 193,719 $ 1,880,142 At June 30, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Allowance for credit losses: Six months ended: Beginning balance $ 741 $ 1,170 $ 292 $ 735 $ 4,057 $ 2,644 $ 234 $ 9,873 Charge-offs (282) (362) (471) (44) (2,026) (525) (18) (3,728) Recoveries — — 104 — 3 32 1 140 Provision for credit losses 669 982 512 202 765 (456) 161 2,835 Ending balance $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Three months ended: Beginning balance $ 1,220 $ 1,372 $ 390 $ 817 $ 3,188 $ 1,543 $ 224 $ 8,754 Charge-offs (62) (238) (221) (44) — (298) (11) (874) Recoveries — — 99 — 1 30 — 130 Provision for credit losses (30) 656 169 120 (390) 420 165 1,110 Ending balance $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Loans and leases: Ending balance $ 115,753 $ 411,213 $ 80,303 $ 232,771 $ 442,449 $ 367,856 $ 50,675 $ 1,701,020 individually evaluated for impairment $ 933 $ 12,530 $ 914 $ 225 $ 2,608 $ 1,862 $ 287 $ 19,359 collectively evaluated for impairment $ 114,820 $ 398,683 $ 79,389 $ 232,546 $ 439,841 $ 365,994 $ 50,388 $ 1,681,661 At December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Allowance for credit losses: Beginning balance $ 741 $ 1,170 $ 292 $ 735 $ 4,057 $ 2,644 $ 234 $ 9,873 Charge-offs (282) (518) (532) (46) (2,026) (622) (210) (4,236) Recoveries 80 - 115 - 17 357 2 571 Provision for credit losses 717 1,604 603 99 920 (276) 526 4,193 Ending balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ 10,401 Allowance allocated to: individually evaluated for impairment $ - $ - $ - $ - $ - $ 500 $ - $ 500 collectively evaluated for impairment $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 1,603 $ 552 9,901 Loans and leases: Ending balance $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 individually evaluated for impairment $ 481 $ 13,131 $ 786 $ 566 $ 1,725 $ 2,360 $ 127 $ 19,176 collectively evaluated for impairment $ 127,804 $ 424,278 $ 73,378 $ 241,229 $ 442,327 $ 370,512 $ 46,809 $ 1,726,337 When potential losses are identified, a specific provision and/or charge-off may be taken, based on the then current likelihood of repayment, that is at least in the amount of the collateral deficiency, and any potential collection costs, as determined by the independent third party appraisal. Loans that are considered impaired are subject to the completion of an impairment analysis. This analysis highlights any potential collateral deficiencies. A specific amount of impairment is established based on the Bank’s calculation of the probable loss inherent in the individual loan. The actual occurrence and severity of losses involving impaired credits can differ substantially from estimates. Credit risk profile by portfolio segment based upon internally assigned credit quality indicators are presented below: June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Credit quality indicators: Not classified $ 128,220 $ 396,686 $ 66,065 $ 241,501 $ 453,361 $ 341,285 $ 46,558 $ 193,719 $ 1,867,395 Special mention — — — 2,501 1,064 10,477 — — 14,042 Substandard 347 12,716 1,365 800 626 1,237 102 — 17,193 Doubtful — — — — — — — — — Total loans and leases $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Credit quality indicators: Not classified $ 127,804 $ 425,247 $ 73,378 $ 241,229 $ 442,327 $ 370,837 $ 46,809 $ 1,727,631 Special mention — — — — — — — — Substandard 481 12,162 786 566 1,725 2,035 127 17,882 Doubtful — — — — — — — — Total loans and leases $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 ● Special Mention - A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. ● Substandard - Substandard loans and leases are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful - Loans and leases classified Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loans and leases classified Special Mention, Substandard, Doubtful or Loss are reviewed at least quarterly to determine their appropriate classification. All commercial loan and lease relationships are reviewed annually. Non-classified residential mortgage loans and consumer loans are not evaluated unless a specific event occurs to raise the awareness of a possible credit deterioration. An aged analysis of past due loans are as follows: June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Analysis of past due loans and leases: Accruing loans and leases current $ 128,220 $ 394,957 $ 64,873 $ 244,002 $ 454,217 $ 351,466 $ 46,414 $ 193,719 $ 1,877,868 Accruing loans and leases past due: 30‑59 days past due — — 1,068 — 76 264 9 — 1,417 60‑89 days past due — 1,306 124 — 182 32 135 — 1,779 Greater than 90 days past due — 423 — — — — — — 423 Total past due — 1,729 1,192 — 258 296 144 — 3,619 Non-accrual loans and leases 1 347 12,716 1,365 800 576 1,237 102 — 17,143 Total loans and leases $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Analysis of past due loans and leases: Accruing loans and leases current $ 127,804 $ 418,668 $ 71,634 $ 241,062 $ 442,132 $ 370,877 $ 46,776 $ 1,718,953 Accruing loans and leases past due: 30‑59 days past due — 3,312 748 — 195 35 19 4,309 60‑89 days past due — 3,220 996 167 — — 14 4,397 Greater than 90 days past due — 47 — — — — — 47 Total past due — 6,579 1,744 167 195 35 33 8,753 Non-accrual loans and leases 1 481 12,162 786 566 1,725 1,960 127 17,807 Total loans and leases $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 1 Included are acquired credit impaired loans where the Company amortizes the accretable discount into interest income, however these loans do not accrue interest based on the terms of the loan. Total loans either in non-accrual status or in excess of 90 days delinquent totaled $17.6 million or 0.93% of total loans outstanding at June 30, 2020, which represents a decrease from $17.9 million, or 1.0%, at December 31, 2019. The Company had no impaired leases or PPP loans at June 30, 2020, June 30, 2019, and December 31, 2019. The impaired loans at June 30, 2020, June 30, 2019, and December 31, 2019 are as follows: June 30, 2020 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 347 $ 13,679 $ 1,365 $ 800 $ 576 $ 1,619 $ 102 $ 18,488 With an allowance recorded — — — — — — — — With no related allowance recorded 347 13,679 1,365 800 576 1,619 102 18,488 Related allowance — — — — — — — - Unpaid principal 533 14,893 1,564 811 615 2,161 105 20,682 Six months ended: Average balance of impaired loans 667 16,052 1,765 817 648 2,544 105 22,598 Interest income recognized — 204 29 5 11 21 — 270 Three months ended: Average balance of impaired loans 666 16,026 1,758 816 647 2,538 105 22,556 Interest income recognized — 93 21 5 7 11 — 137 June 30, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 933 $ 12,530 $ 914 $ 225 $ 2,608 $ 1,862 $ 287 $ 19,359 With an allowance recorded — — — — — — — — With no related allowance recorded 933 12,530 914 225 2,608 1,862 287 19,359 Related allowance — — — — — — — — Unpaid principal 1,322 13,818 1,135 246 4,363 3,097 302 24,283 Six months ended: Average balance of impaired loans 1,459 15,171 1,385 247 4,480 3,536 313 26,591 Interest income recognized — 138 33 8 13 14 5 211 Three months ended: Average balance of impaired loans 1,454 15,154 1,370 247 4,457 3,525 313 26,520 Interest income recognized — 86 26 8 6 10 4 140 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 481 $ 13,131 $ 786 $ 566 $ 1,725 $ 2,360 $ 127 $ 19,176 With an allowance recorded — — — — — 554 — 554 With no related allowance recorded 481 13,131 786 566 1,725 1,806 127 18,622 Related allowance — — — — — 500 — 500 Unpaid principal 667 14,371 986 583 2,023 3,584 130 22,344 Average balance of impaired loans 814 15,586 1,338 594 2,105 4,392 141 24,970 Interest income recognized 5 400 106 30 11 195 1 748 1 Included are acquired credit impaired loans where the Company amortizes the accretable discount into interest income, however these loans do not accrue interest based on the terms of the loan. Included in the total impaired loans above were non-accrual loans of $17.1 million and $17.8 million at June 30, 2020 and December 31, 2019, respectively. Interest income that would have been recorded if non-accrual loans had been current and in accordance with their original terms was $338 thousand and $534 thousand for the six months ended June 30, 2020 and 2019, respectively. Loans may have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. Such restructured loans are considered impaired loans that may either be in accruing status or non-accruing status. Non-accruing restructured loans may return to accruing status provided there is a sufficient period of payment performance in accordance with the restructure terms. Loans may be removed from the restructured category in the year subsequent to the restructuring if they have performed based on all of the restructured loan terms. The Company had no troubled debt restructured (“TDR”) leases or PPP loans at June 30, 2020 and December 31, 2019. The TDR loans at June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 2 $ 261 2 $ 963 $ 1,224 Commercial loans and leases 1 414 2 363 777 3 $ 675 4 $ 1,326 $ 2,001 December 31, 2019 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Construction and land 1 $ 125 — $ — $ 125 Residential real estate - first lien 2 274 2 968 1,242 Commercial loans and leases 1 414 2 367 781 4 $ 813 4 $ 1,335 $ 2,148 A summary of TDR modifications outstanding and performing under modified terms is as follows: June 30, 2020 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 261 $ 963 $ 1,224 Commercial loans Extension or other modification — — 363 363 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 675 $ 1,326 $ 2,001 December 31, 2019 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Construction and land Extension or other modification $ — $ 125 $ — $ 125 Residential real estate - first lien Extension or other modification — 274 968 1,242 Commercial loans Extension or other modification — — 367 367 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 813 $ 1,335 $ 2,148 The CARES Act permits financial institutions to suspend requirements under GAAP for certain loan modifications to borrowers affected by COVID-19 that would otherwise be characterized as TDRs. In addition, federal banking regulators issued, shortly before the CARES Act was enacted, an interagency statement that included guidance on their approach for the accounting of loan modifications in light of the economic impact of the COVID-19 pandemic. The guidance interprets current accounting standards and indicates that a lender can conclude that a borrower is not experiencing financial difficulty if short-term modifications are made in response to COVID-19, such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant related to the loans in which the borrower is less than 30 days past due on its contractual payments at the time a modification program is implemented. The agencies confirmed in working with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. The Company provided COVID-19 related loan modifications to both commercial and retail customers, on a case by case basis, in the form of payment deferrals for periods up to six months. As of June 30, 2020, a total of $291.4 million of loans (or 17.1% of total loans and leases) were performing under some form of deferral or other payment relief. This compares to $347.0 million (19.7% of total loans and leases) that the Company disclosed as of May 8, 2020. As of August 6, 2020, $159.0 million of loans (or 8.4% of total loans and leases) were performing under some form of deferral or other payment relief. There were no new TDRs during the six months ended June 30, 2020 and June 30, 2019. Performing TDRs were in compliance with their modified terms and there are no further commitments associated with these loans. During the three months ended June 30, 2020 and 2019 there were no TDRs that subsequently defaulted within twelve months of their modification dates. Management routinely evaluates other real estate owned (“OREO”) based upon periodic appraisals. For the six months ended June 30, 2020 the Bank recorded a $257 thousand valuation allowance on three unimproved parcels of land because the current appraised value (based on a new appraisal), less estimated costs to sell, was lower than the recorded carrying value of the OREO. For the six months ended June 30, 2020 there was one residential first mortgage loan totaling $51 thousand transferred from loans to OREO. The Company sold several parcels of land and one commercial real estate property held as OREO during the six months ended June 30, 2020, reducing OREO by $405 thousand and resulting in a loss of $28 thousand. For the six month period ending June 30, 2019, there was one residential first mortgage loan totaling $375 thousand transferred from loans to OREO, a valuation allowance of $65 thousand was recorded, and no OREO properties were sold. At June 30, 2020 there was one loan secured by a residential first lien of $2.3 million and one commercial real estate loan of $42 thousand in the process of foreclosure. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives and Hedging Activities | |
Derivatives and Hedging Activities | Note 6: Derivatives and Hedging Activities Non-designated Hedges of Interest Rate Risk The Company maintains interest rate swap contracts with customers that are classified as non-designated hedges and are not speculative in nature. These agreements are designed to convert customer’s variable rate loans with the Company to fixed rate. These interest rate swaps are executed with loan customers to facilitate a respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. These interest rate swaps are simultaneously hedged by executing offsetting interest rate swaps with unrelated market counterparties to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swaps pay and receive interest based on a floating rate based on one month LIBOR plus credit spread with payment being calculated on the notional amount. The interest rate swaps are settled with varying maturities. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The fair value of the interest rate swap derivatives are recorded in other assets and other liabilities. All changes in fair value are recorded through earnings as noninterest income. For the six months ended June 30, 2020 and June 30, 2019, the Company recorded a net loss of $9 thousand and $6 thousand, respectively related to the change in fair value of these interest rate swap derivatives. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet at June 30, 2020 and December 31, 2019: June 30, 2020 Balance Sheet Notional Estimated Fair Value (dollars in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other assets and other liabilities $ 2,748 $ 404 $ — Matched interest rate swaps with counterparty Other assets and other liabilities $ 2,748 $ — $ 423 December 31, 2019 Balance Sheet Notional Estimated Fair Value (dollars in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other assets and other liabilities $ 2,853 $ 217 $ — Matched interest rate swaps with counterparty Other assets and other liabilities $ 2,853 $ — $ 228 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 7: Goodwill and Other Intangible Assets Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset would more-likely-than-not reduce the fair value below the carrying amount. The Bank has one reporting unit, which is the core banking operation. The Company performs its annual impairment evaluation in the fourth quarter. Due to the COVID-19 pandemic and the related economic fallout, including most specifically, declining stock prices at both the Company and peer banks, the Federal Reserve’s significant reduction in interest rates, and other business and market considerations, the Company performed an interim goodwill impairment analysis as of June 30, 2020. Based on this analysis, the estimated fair value of the Company was less than book value, resulting in a $34.5 million impairment charge, recorded in noninterest expense, in the second quarter of 2020. This was a non-cash charge to earnings and had no impact on the Company’s regulatory capital ratios, cash flows, or liquidity position. The table below shows goodwill balances at: (in thousands) Goodwill: December 31, 2019 $ 65,949 Goodwill impairment (34,500) June 30, 2020 $ 31,449 Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in either business combinations or other purchases of deposits and are amortized based upon the estimated economic benefits received. The gross carrying amount and accumulated amortization of other intangible assets are as follows: June 30, 2020 Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) Amortizing intangible assets: Core deposit intangible $ 16,135 $ 9,045 $ 7,090 3.2 December 31, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) Amortizing intangible assets: Core deposit intangible $ 16,135 $ 7,666 $ 8,469 3.7 Estimated future amortization expense for amortizing intangibles are as follows: (in thousands) 2020 $ 1,295 2021 2,326 2022 1,915 2023 1,298 2024 256 Total amortizing intangible assets $ 7,090 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Leases | Note 8: Leases The Company has operating leases on land and buildings with remaining lease terms ranging from 2020 to 2030. Many of the leases include renewal options, with renewal terms generally extending up to 10 years. In 2019, with the execution of the Company’s branch optimization initiative, under which the closing of three branch locations and the consolidation of two other existing branch locations was announced, a $3.6 million charge to noninterest expenses, primarily related to the early termination of existing lease arrangements for the closing locations, was recorded in the second quarter of 2019. The closing of the three locations occurred in the third quarter of 2019, and the consolidation of the two branch locations into a single new location occurred in the first quarter of 2020. The early termination of these leases reduced the initial $18.0 million in right-of-use (“ROU”) assets recorded on January 1, 2019 to $14.5 million at December 31, 2019. In the first quarter of 2020, the opening of the new location noted above increased ROU assets by $2.0 million. Operating leases included the following at: (in thousands) June 30, 2020 December 31, 2019 Operating Leases Operating leases ROU assets $ 15,312 $ 14,092 Operating lease liabilities $ 15,805 $ 14,507 The components of lease expense were as follows: Six months ended June 30, Three months ended June 30, (in thousands) 2020 2019 2020 2019 Operating lease cost $ 784 $ 1,080 $ 420 $ 530 Sublease income (344) (293) (176) (108) Amortization of ROU assets 77 82 32 82 $ 517 $ 869 $ 276 $ 504 Lease liability maturities are as follows: (in thousands) 2020 $ 855 2021 1,662 2022 1,520 2023 1,372 2024 1,170 Thereafter 13,033 Total future lease payments $ 19,612 Discount of cash flows (3,807) Present value on net future lease payments $ 15,805 Weighted average remaining term in years 6.47 Weighted average discount rate 2.89 % |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2020 | |
Deposits | |
Deposits | Note 9: Deposits The following table details the composition of deposits and the related percentage mix of total deposits, respectively, at the dates indicated: June 30, 2020 December 31, 2019 % of % of (dollars in thousands) Amount Total Amount Total Noninterest-bearing demand $ 671,598 37 % $ 468,975 27 % Interest-bearing checking 186,768 10 183,447 11 Money market accounts 383,031 21 360,711 21 Savings 146,148 7 130,141 7 Certificates of deposit $250 and over 65,769 4 77,782 5 Certificates of deposit under $250 377,360 21 493,309 29 Total deposits $ 1,830,674 100 % $ 1,714,365 100 % |
Stock Options and Stock Awards
Stock Options and Stock Awards | 6 Months Ended |
Jun. 30, 2020 | |
Stock Options and Stock Awards | |
Stock Options and Stock Awards | Note 10: Stock Options and Stock Awards The Company’s equity incentive plan provides for awards of nonqualified and incentive stock options as well as vested and non-vested common stock awards. As of June 30, 2020, 417,844 shares are reserved for issuance pursuant to future grants under the Company’s stock incentive plan. Employee stock options can be granted with exercise prices at the fair market value (as defined within the plan) of the stock at the date of grant and with terms of up to ten years and typically vest over a three to five year period. Except as otherwise permitted in the plan, upon termination of employment for reasons other than retirement, permanent disability or death, the option exercise period is reduced or the options are canceled. Stock awards may also be granted to non-employee members of the Company’s board of directors (the “Board of Directors” or “Board”) as compensation for attendance and participation at meetings of the Board of Directors and meetings of the various committees of the Board. For the six months ended June 30, 2020 and 2019, the Company issued 8,151 and 4,802 shares of common stock, respectively, to directors as compensation for their service. Stock Options The fair value of the Company’s stock options granted as compensation is estimated on the measurement date, which, for the Company, is the date of grant. The fair value of stock options is calculated using the Black-Scholes option-pricing model under which the Company estimates expected market price volatility and expected term of the options based on historical data and other factors. There were no stock options granted during the six months ended June 30, 2020, while there were 25,000 options granted for the year ended December 31, 2019. The following table summarizes the Company’s stock option activity and related information for the periods ended: June 30, 2020 December 31, 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Balance at January 1, 25,000 $ 14.54 15,268 $ 8.76 Granted — — 25,000 14.54 Exercised — — (13,418) 8.58 Forfeited — — (1,850) 10.10 Balance at period end 25,000 $ 14.54 25,000 $ 14.54 Exercisable at period end 8,337 $ 14.54 — $ — Weighted average fair value of options granted during the year N/A $ 5.83 No stock options were exercised for the six months ended June 30, 2020. The cash received from the exercise of stock options was $105 thousand for the six months ended June 30, 2019. The intrinsic value of a stock option is the amount that the market value of the underlying stock exceeds the exercise price of the option. Based upon a fair market value of $10.62 at June 30, 2020, the options outstanding had no aggregate intrinsic value. At December 31, 2019, based upon a fair market value of $16.88, the options outstanding had an aggregate intrinsic value of $59 thousand. At June 30, 2020, based on stock options outstanding at the time, the total unrecognized pre-tax compensation expense related to unvested options was $77 thousand. Restricted Stock Units (“RSU”) RSUs are equity awards where the recipient does not receive the stock immediately, but instead receives it according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each RSU that vests entitles the recipient to receive one share of the Company’s common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded RSUs until the recipient becomes the record holder of those shares. The valuation of the Company’s RSUs is the closing price per share of the Company’s common stock on the date of grant. The Company granted 156,947 RSUs during the first six months of 2020, subject to a five-year vesting schedule. The Company granted 18,500 RSUs during the first six months of 2019, subject to a three-year vesting schedule. A summary of the activity for the Company’s RSUs for the periods indicated is presented in the following table: June 30, 2020 December 31, 2019 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Balance at January 1, 11,032 $ 17.48 9,731 $ 17.29 Granted 156,947 14.87 26,500 15.16 Vested (834) 19.85 (6,699) 16.13 Forfeited — (18,500) 14.54 Balance at period end 167,145 $ 15.02 11,032 $ 17.48 At June 30, 2020, based on RSUs outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSUs was $2.0 million. Based upon the contractual terms, this expense is expected to be recognized as follows: (in thousands) 2020 $ 269 2021 509 2022 480 2023 390 2024 363 2025 32 $ 2,043 Stock-Based Compensation Expense Stock-based compensation expense attributable to stock options and RSUs is based on their fair values on the measurement date, which, for the Company, is the date of the grant. This cost is then recognized in noninterest expense on a straight-line basis over the vesting period of the respective stock options and RSUs. The amount that the Company recognized in stock-based compensation expense related to the issuance of stock options and RSUs as well as director compensation paid in stock is presented in the following table: Six months ended Three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense Related to the issuance of restricted stock and RSUs $ 217 $ 112 $ 126 $ 62 Related to the issuance of stock options 24 — 12 — Director compensation paid in stock 137 62 — — Total stock-based compensation expense $ 378 $ 174 $ 138 $ 62 |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Benefit Plans | |
Benefit Plans | Note 11: Benefit Plans Profit Sharing Plan The Company sponsors a defined contribution retirement plan through a Section 401(k) profit sharing plan. Employees may contribute up to 15% of their pretax compensation. Participants are eligible for matching Company contributions up to 4% of eligible compensation dependent on the level of voluntary contributions. Company matching contributions totaled $468 thousand and $540 thousand, respectively, for the six months ended June 30, 2020 and 2019. The Company’s matching contributions vest immediately. Supplemental Executive Retirement Plan (“SERP”) In 2014, the Bank created a SERP for the Chief Executive Officer ("CEO"). This plan was amended in 2016. Under the defined benefit SERP, the CEO will receive $150,000 each year for 15 years after attainment of the Normal Retirement Age (as defined in the SERP). The CEO earned vesting on a graduated schedule and she became fully vested on August 25, 2019, which had been established for purposes of the SERP as the commencement date for SERP distributions. Expense related to this SERP totaled $37 thousand and $105 thousand for the six month periods ending June 30, 2020 and 2019, respectively. Employee Stock Purchase Plan The 2017 Employee Stock Purchase Plan (the “Plan”) provides eligible employees of the Company and certain of its subsidiaries with opportunities to purchase shares of the Company’s common stock. An aggregate of 250,000 shares of the Company’s common stock was approved for issuance under the Plan. The Plan is intended to qualify as an “employee stock purchase plan” as defined in Section 423 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, and shall be interpreted consistent therewith. There was no expense related to this plan for the six months ended June 30, 2020. The expense related to the Company's contribution to the Plan totaled $19 thousand for the six months ended June 30, 2019. |
Net (Loss) Income per Common Sh
Net (Loss) Income per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Net (Loss) Income per Common Share | |
Net (Loss) Income per Common Share | Note 12: Net (Loss) Income per Common Share The table below shows the presentation of basic and diluted net (loss) income per common share for the periods indicated: Six months ended Three months ended June 30, June 30, (dollars in thousands, except per share data) 2020 2019 2020 2019 Net (loss) income available to common stockholders (numerator) $ (26,066) $ 6,344 $ (29,409) $ 2,088 BASIC Basic average common shares outstanding (denominator) 18,791,378 19,056,953 18,715,669 19,061,164 Basic (loss) income per common share $ (1.39) $ 0.33 $ (1.57) $ 0.11 DILUTED Average common shares outstanding 18,791,378 19,056,953 18,715,669 19,061,164 Dilutive effect of common stock equivalents — 14,367 — 6,460 Diluted average common shares outstanding (denominator) 18,791,378 19,071,320 18,715,669 19,067,624 Diluted (loss) income per common share $ (1.39) $ 0.33 $ (1.57) $ 0.11 Because the Company reported a loss for both 2020 periods, common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share. 81,761 — 59,466 — Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above 25,000 25,000 25,000 25,000 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital | |
Regulatory Capital | Note 13: Regulatory Capital The following table reflects Bancorp’s and the Bank’s capital at June 30, 2020 and December 31, 2019: To be well capitalized under the FDICIA For capital prompt corrective Actual adequacy purposes (1) action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2020: Total capital (to risk-weighted assets) Howard Bank $ 256,374 14.00 % $ 146,503 8.00 % $ 183,129 10.00 % Howard Bancorp $ 258,943 14.09 % $ 147,022 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 240,018 13.11 % $ 82,408 4.50 % $ 119,034 6.50 % Howard Bancorp $ 214,249 11.66 % $ 82,700 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 240,018 13.11 % $ 109,877 6.00 % $ 146,503 8.00 % Howard Bancorp $ 214,249 11.66 % $ 110,267 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 240,018 10.33 % $ 92,931 4.00 % $ 116,163 5.00 % Howard Bancorp $ 214,249 9.18 % $ 93,308 4.00 % N/A As of December 31, 2019: Total capital (to risk-weighted assets) Howard Bank $ 238,384 12.86 % $ 148,314 8.00 % $ 185,392 10.00 % Howard Bancorp $ 247,761 13.14 % $ 150,872 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 227,983 12.30 % $ 83,427 4.50 % $ 120,505 6.50 % Howard Bancorp $ 209,119 11.09 % $ 84,866 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 227,983 12.30 % $ 111,235 6.00 % $ 148,314 8.00 % Howard Bancorp $ 209,119 11.09 % $ 113,154 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 227,983 10.43 % $ 87,434 4.00 % $ 109,293 5.00 % Howard Bancorp $ 209,119 9.55 % $ 87,599 4.00 % N/A (1) Amounts shown exclude the capital conservation buffer of 2.50%. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, Bancorp is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the FRB (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to Bancorp, the Company calculates these ratios for its own planning and monitoring purposes. Bancorp and the Bank met all capital adequacy requirements to which they are subject as of June 30, 2020 and December 31, 2019. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Contingencies | |
Contingencies | Note 14: Contingencies In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal and regulatory actions and proceedings. The most significant of these is described below. In view of the inherent difficulty of predicting the outcome of such matters, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each matter may be. The Company establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The Company thereafter continues to monitor such matters for further developments that could affect the amount of the accrued liability that has been previously established. Potential mortgage origination claims The Bank has been notified of potential claims stemming from certain mortgages originated at First Mariner Bank prior to its merger into the Bank. While no lawsuit has been filed with respect to such potential claims, the Bank has engaged in confidential discussions related to the potential claims. Significant management judgment, which involves a variety of assumptions, estimates and known and unknown uncertainties, is required to assess whether a related loss resulting from such potential claims is probable and estimable, such that an accrued liability should be established. The Company has accrued a liability of $1.0 million with respect to these potential claims. It is not possible to determine the outcome of these potential claims, and the amount of the accrued liability is subject to change as additional information becomes available. The Company believes it is reasonably possible that the amount of the actual loss may be greater than the amount accrued. However, the Company is currently unable to reasonably estimate the amount or range of additional loss, if any, that is reasonably possible, due in significant part to (a) the preliminary nature of the potential claims, (b) the fact that no complaint has been filed and, accordingly, no discovery has been conducted, (c) potential damages related to the claims are currently unsubstantiated, and (d) uncertainty as to the legal and factual determinations that would be made during any potential litigation related to the claims. Based on current knowledge, management does not believe that losses resulting from these potential claims in excess of the accrued liability, if any, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved, some of which are beyond the Company’s control, an adverse outcome or settlement with respect to these potential claims could be material to the Company’s results of operations for any particular reporting period. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value | |
Fair Value | Note 15: Fair Value FASB ASC Topic 820 “Fair Value Measurements” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Recurring Fair Value Measurements All classes of investment securities available for sale are recorded at fair value using an industry-wide valuation service and therefore fall into a Level 2 of the fair value hierarchy. The service uses evaluated pricing models that vary based on asset class and include available trade, bid and other market information. Various methodologies include broker quotes, proprietary models, descriptive terms and conditions databases, and quality control programs. Fair value of loans held for sale is based upon outstanding investor commitments or, in the absence of such commitments, based on current investor yield requirements or third party pricing models and are considered Level 2. Gains and losses on loan sales are determined using specific identification method. Changes in fair value are recognized in the Consolidated Statement of Operations as part of realized and unrealized gain on mortgage banking activities. Interest rate lock commitments are recorded at fair value determined as the amount that would be required to settle each of these derivatives at the balance sheet date. In the normal course of business, the Company enters into contractual interest rate lock commitments to extend credit to borrowers with fixed expiration dates. The commitment becomes effective when the borrowers lock in a specified interest rate within the time frames established by the mortgage division. All borrowers are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time interest rate is locked by the borrower and the sale date of the loan to an investor. To mitigate this interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into best effort forward sales contracts to sell loans to investors. The forward sales contracts lock in an interest rate price for the sale of loans similar to the specific rate lock commitment. Rate lock commitments to the borrowers through the date the loan closes are undesignated derivatives and accordingly, are marked to fair value in earnings. These valuations fall into a Level 3 of the fair value hierarchy. The rate lock commitments are deemed as Level 3 inputs because the Company applies an estimated pull-through rate, which is deemed an unobservable measure. For loans held for investment that were originally intended to be sold and previously included as loans held for sale, fair value is determined by discounting estimated cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The following table sets forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at June 30, 2020 and December 31, 2019. June 30, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 79,615 $ — $ 79,615 $ — Mortgage-backed securities 191,826 — 191,826 — Other investments 5,448 — 5,448 — Loans held for investment 3,346 — 3,346 — Interest rate swap assets 404 — 404 — Liabilities Interest rate swap liabilities 423 — 423 — December 31, 2019 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 67,312 $ — $ 67,312 $ — Mortgage-backed securities 142,699 — 142,699 — Other investments 5,494 — 5,494 — Loans held for sale 30,710 — 30,710 — Loans held for investment 997 — 997 — Rate lock commitments 60 — — 60 Interest rate swap assets 217 — 217 — Liabilities Interest rate swap liabilities 228 — 228 — The following table presents a reconciliation of the assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods presented: June 30, December 31, (in thousands) 2020 2019 Balance, beginning of period $ 60 $ 126 Net losses included in realized and unrealized gains on mortgage banking activity in noninterest income (60) (66) Balance, end of period $ — $ 60 Assets under fair value option: June 30, 2020 Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference Loans held for investment 3,346 3,283 63 December 31, 2019 Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference Loans held for sale $ 30,710 $ 29,969 $ 741 Loans held for investment 997 966 31 The Company elected to measure the loans held for sale and the loans held for investment that were originally intended for sale, but instead were added to the Bank’s portfolio at fair value, to better align reported results with the underlying economic changes in value of the loans on the Company’s balance sheet. Non-recurring Fair Value Measurements Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or market value. Market value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of real estate collateral is determined based on appraisal by qualified licensed appraisers hired by the Company. The value of business equipment, inventory and accounts receivable collateral is based on the net book value on the business' financial statements and, if necessary, discounted based on management's review and analysis. Appraised and reported values may be discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. Other real estate owned acquired through, or in lieu of, foreclosure (“OREO”) are held for sale and are initially recorded at fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for credit losses. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. A valuation loss of $257 thousand was recognized for the six months ended June 30, 2020 and a $65 thousand valuation loss was recorded for the six months ended June 30, 2019. Charges were for declines in the value of OREO subsequent to foreclosure. OREO is classified within Level 3 of the hierarchy. Net (loss)/gain included in earnings from the changes in fair value of loans held for sale was $(274) thousand and $290 thousand at June 30, 2020 and 2019, respectively. There was a net gain included in earnings from the change in fair value of loans held for investment of $63 thousand for the six months ended June 30, 2020 and $31 thousand for the six months ended June 30, 2019. The following table sets forth the Company’s financial assets and liabilities that were accounted for or disclosed at fair value on a nonrecurring basis at June 30, 2020 and December 31, 2019: June 30, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 2,137 $ — $ — $ 2,137 Impaired loans: Construction and land 347 — — 347 Residential - first lien 13,679 — — 13,679 Residential - junior lien 1,365 — — 1,365 Commercial - owner occupied 800 — — 800 Commercial - non-owner occupied 576 — — 576 Commercial loans and leases 1,619 — — 1,619 Consumer 102 — — 102 Total impaired loans 18,488 18,488 December 31, 2019 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 3,098 $ — $ — $ 3,098 Impaired loans: Construction and land 481 — — 481 Residential - first lien 13,131 — — 13,131 Residential - junior lien 786 — — 786 Commercial - owner occupied 566 — — 566 Commercial - non-owner occupied 1,725 — — 1,725 Commercial loans and leases 1,860 — — 1,860 Consumer 127 — — 127 Total impaired loans 18,676 18,676 At June 30, 2020, OREO consisted of an outstanding balance of $3.5 million, less a valuation allowance of $1.4 million. At December 31, 2019, OREO consisted of an outstanding balance of $4.6 million, less a valuation allowance of $1.5 million. A specific allocation of the allowance for credit losses attributable to impaired loans at December 31, 2019 was $500 thousand. Various techniques are used to value OREO and impaired loans. All loans for which the underlying collateral is real estate, either construction, land, commercial, or residential, an independent appraisal is used to identify the value of the collateral. The approaches within the appraisal report include sales comparison, income, and replacement cost analysis. The resulting value will be adjusted by a selling cost of 9.5% and the residual value will be used to determine if there is an impairment. Commercial loans and leases and consumer loans utilize a liquidation approach to the impairment analysis. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are based on quoted market prices where available or calculated using present value techniques. Since quoted market prices are not available on many of our financial instruments, estimates may be based on the present value of estimated future cash flows and estimated discount rates. The following table presents the estimated fair value of the Company’s financial instruments at the dates indicated: June 30, 2020 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 276,889 $ 276,889 $ — $ 276,889 $ — Held to maturity securities 7,250 7,195 — — 7,195 Nonmarketable equity securities 12,592 12,592 — 12,592 — Loans held for investment 3,346 3,346 — 3,346 — Loans and leases 1 1,878,928 1,889,696 — — 1,889,696 Interest rate swap 404 404 — 404 — Financial Liabilities Deposits 1,830,674 1,828,613 — 1,828,613 — Customer repos and other borrowings 37,834 37,834 5,321 FHLB advances 246,000 249,079 — 249,079 — Subordinated debt 28,339 28,339 — 28,339 — Interest rate swap 423 423 — 423 — December 31, 2019 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 215,505 $ 215,505 $ — $ 215,505 $ — Held to maturity securities 7,750 7,897 — — 7,897 Nonmarketable equity securities 14,152 14,152 — 14,152 — Loans held for sale 30,710 30,710 — 30,710 — Loans held for investment 997 997 — 997 — Rate lock commitments 60 60 — — 60 Loans and leases 1 1,734,115 1,735,013 — — 1,735,013 Interest rate swap 217 217 — 217 — Financial Liabilities Deposits 1,714,365 1,713,081 — 1,713,081 — Customer repos and other borrowings 6,127 6,127 6,127 FHLB advances 285,000 288,731 — 288,731 — Subordinated debt 28,241 28,241 — 28,241 — Interest rate swap 228 228 — 228 — (1) Carrying amount is net of unearned income and allowance for loan and lease losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans were measured using an exit price notion at periods presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Howard Bancorp, Inc. (“Bancorp” or the “Company”) was incorporated in April 2005 under the laws of the State of Maryland. On December 15, 2005, Bancorp acquired all of the stock of Howard Bank (the “Bank”) pursuant to the Plan of Reorganization approved by the stockholders of the Bank and by federal and state regulatory agencies. Each share of the Bank’s common stock was converted into two shares of Bancorp common stock effected by the filing of Articles of Exchange on that date, and the stockholders of the Bank became the stockholders of Bancorp. Bancorp is now a bank holding company registered under the Bank Holding Company Act of 1956, with a single bank subsidiary, Howard Bank, which operates as a state trust company with commercial banking powers regulated by the Maryland Office of the Commissioner of Financial Regulation (the “Commissioner”). The Bank has nine subsidiaries—six were formed to hold foreclosed real estate (three of which are currently inactive), two own and manage real estate used for corporate purposes, and one holds historic tax credit investments. The Company is a diversified financial services company providing commercial banking and consumer finance through banking branches, the internet and other distribution channels to businesses, business owners, professionals and other consumers located primarily in the Greater Baltimore Metropolitan Area. These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2019 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on March 16, 2020. There have been no significant changes to the Company’s accounting policies as disclosed in the 2019 Annual Report on Form 10-K. The following is a description of the Company’s significant accounting policies. |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the financial services industry for financial information. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Bancorp, the Bank and the Bank’s subsidiaries. All significant intercompany accounts and transactions have been eliminated. The parent company only financial statements report investments in the Bank under the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for credit losses, goodwill, deferred tax assets, other-than-temporary impairment of investment securities and the fair value of loans held for sale. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan and lease portfolio and is based on the size and current risk characteristics of the loan and lease portfolio, an assessment of individual problem loans and leases, actual loss experience, current economic events in specific industries and geographic areas including unemployment levels and other pertinent factors including general economic conditions. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans and leases, estimated losses on pools of homogenous loans and leases based on historical loss experience and consideration of economic trends, all of which may be susceptible to significant change. Credit losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance for credit losses consists of a specific component and a nonspecific component. The components of the allowance for credit losses represent an estimation done pursuant to either the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) Topic 450 Contingencies or ASC Topic 310 Receivables . The specific component of the allowance for credit losses reflects expected losses resulting from analysis developed through credit allocations for individual loans and leases. The credit allocations are based on a regular analysis of all loans and leases over a fixed-dollar amount where the internal credit rating is at or below a predetermined classification. The specific component of the allowance for credit losses also includes management’s determination of the amounts necessary given concentrations and changes in portfolio mix and volume. The nonspecific portion of the allowance is determined based on management’s assessment of general economic conditions, as well as economic factors in the individual markets in which the Company operates including the strength and timing of economic cycles and concerns over the effects of a prolonged economic downturn in the current cycle. This determination inherently involves a higher risk of uncertainty and considers current risk factors that may not have yet manifested themselves in the Bank’s historical loss factors used to determine the nonspecific component of the allowance, and it recognizes that knowledge of the portfolio may be incomplete. The Bank’s historic loss factors are based upon actual losses incurred by portfolio segment over the preceding 24-month period. In portfolio segments where no actual losses have been incurred within the most recent 24-month period, industry loss data for that portfolio segment, as provided by the Federal Deposit Insurance Corporation (“FDIC”), are utilized. In addition to historic loss factors, the Bank’s methodology for the allowance for credit losses incorporates other risk factors that may be inherent within the portfolio segments. For each portfolio segment, in addition to the historic loss experience, the qualitative factors that are measured and monitored in the overall determination of the allowance include: ● changes in lending policies, procedures, and practices; ● changes in international, national, state and local economic and business conditions and developments that affect the collectibility of the portfolio, including the condition of various market segments; ● changes in the nature and volume of the loan portfolio; ● changes in the experience, ability and depth of the lending staff; ● changes in the volume and severity of past due, nonaccrual, and adversely classified loans; ● changes in the quality of our loan review system; ● changes in the value of underlying collateral for collateral-dependent loans; ● the existence of any concentrations of credit, and changes in the level of such concentrations; ● the effect of other external factors such as competition and legal and regulatory requirements; and ● any other factors that management considers relevant to the quality or performance of the loan portfolio. Each of these qualitative risk factors is measured based upon data generated either internally, or in the case of economic conditions utilizing independently provided data on items such as unemployment rates, commercial real estate vacancy rates, or other market data deemed relevant to the business conditions within the markets served. The Company’s loan and lease policies state that after all collection efforts have been exhausted, and the loan or lease is deemed to be a loss, then the remaining loan or lease balance will be charged to the Company’s established allowance for credit losses. All loans and leases are evaluated for loss potential once it has been determined by the Watch Committee that the likelihood of repayment is in doubt. When a loan is past due for at least 90 days or a deterioration in debt service coverage ratio, guarantor liquidity, or loan-to-value ratio has occurred that would cause concern regarding the likelihood of the full repayment of principal and interest, and the loan or lease is deemed not to be well secured, the loan or lease would be moved to non-accrual status and a specific reserve is established if the net realizable value is less than the principal value of the loan balance(s). Once the actual loss value has been determined, a charge-off against the allowance for credit losses for the amount of the loss is taken. Each loss is evaluated on its specific facts regarding the appropriate timing to recognize the loss. |
Acquired Loans | Acquired Loans Acquired loans are recorded at fair value at the date of acquisition, and accordingly, no allowance for loan losses is transferred to the acquiring entity under the acquisition method. The fair values of loans with evidence of credit deterioration (acquired credit impaired loans) are initially recorded at fair value, but thereafter accounted for differently than purchased, non-credit-impaired loans. For acquired credit impaired loans, the excess of all cash flows estimated to be collectable at the date of acquisition over the initial investment in the acquired credit impaired loan is recognized as interest income, using a level-yield basis over the life of the loan. This amount is referred to as the accretable yield. The acquired credit impaired loan’s contractually-required payments receivable estimated to be in excess of the amount of its future cash flows expected at the date of acquisition is referred to as the non-accretable difference, and is not reflected as an adjustment to the yield, but in the form of a loss accrual or a valuation allowance. Subsequent to the acquisition date, management continues to monitor cash flows on a quarterly basis, to determine the performance of each acquired credit impaired loan in comparison to management’s initial performance expectations. Subsequent decreases in the present value of expected cash flows will be recorded as an increase in the allowance for credit losses through a provision for loan losses. Subsequent significant increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions or a reclassification of amount from non-accretable difference to accretable yield, with a positive impact on the accretion of interest income in future periods. |
Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the sum of the estimated fair values of tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in a business combination. The core deposit intangible is amortized over the estimated useful lives of the long-term deposits acquired, and the remaining amounts of the core deposit intangible are periodically reviewed for impairment. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. Long-lived assets are those that provide the Company with a future economic benefit beyond the current year or operating period. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is greater than the fair value of the asset. Assets to be disposed of are reported at the lower of the cost or the fair value, less costs to sell. Effective April 1, 2020, the Company adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, Management has determined that the Company has one reporting unit. The sudden and continuing decline in economic conditions triggered by the Coronavirus ("COVID-19") pandemic included a significant decline in stock market valuations and the stock price of the Company and peer banks. These events indicated that goodwill may be impaired and resulted in us performing a goodwill impairment assessment. As a result, a goodwill impairment charge of $34.5 million was recorded as the Company's estimated fair value was less than its book value. |
Income Taxes | Income Taxes The Company uses the asset/liability method of accounting for income taxes. Under the asset/liability method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities (i.e., temporary differences) and are measured at the enacted rates that will be in effect when these differences reverse. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In addition, deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company does not have uncertain tax positions that are deemed material, and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes in other noninterest expenses. The Company remains subject to examination by federal and state taxing authorities for income tax returns for the years ending after December 31, 2015. |
Share-Based Compensation | Share-Based Compensation Compensation cost is recognized for stock options and restricted stock issued to directors and employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. When an award is granted to an employee who is retirement eligible, the compensation cost of these awards is recognized over the period up to when the director or employee first becomes eligible to retire. Compensation expense for non-vested common stock awards is based on the fair value of the awards, which is generally the market price of the common stock on the measurement date, which, for the Company, is the date of grant, and is recognized ratably over the service period of the award. |
Reclassifications | Reclassifications Certain reclassifications to prior financial presentation were made to conform to the 2020 presentation. These reclassifications did not affect previously reported net income or total stockholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The FASB has issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The FASB has issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). This ASU amends the effective date of the credit loss standard (ASU 2016-13) for smaller reporting companies, as defined by the SEC. The one-time determination of whether an entity is eligible to be a smaller reporting company is based on an entity’s most recent determination as of November 15, 2019, in accordance with SEC regulations. The Company met this definition of smaller reporting company based on its most recent determination as of November 15, 2019. As a result, the effective date of this ASU for the Company has been amended from fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, to fiscal years beginning after December 31, 2022, and interim periods within those fiscal years. In addition, this ASU amended the mandatory effective date for the elimination of Step 2 from the goodwill impairment test (ASU 2017-04 discussed below). As a smaller reporting company, the effective date of the goodwill impairment standard for the Company has been amended from fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, to fiscal years beginning after December 31, 2022, and interim periods within those fiscal years. The FASB has issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The FASB has issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). |
COVID-19 Risks and Uncertainties | COVID-19 Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID-19) surfaced in China, and has since spread to many other countries, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. In response to the COVID-19 pandemic, the State of Maryland and most other states took preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that were deemed to be non-essential. Although many businesses have begun to reopen, some states, including Maryland, have since experienced a resurgence of COVID-19 cases, which may further slow overall economic activity and recovery. Uncertainty also remains regarding if, how and when schools will reopen and the impact of such reopening decisions on the economy. The impact of the COVID-19 pandemic is fluid and continues to evolve. The unprecedented and rapid spread of COVID-19 and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets. In addition, due to the COVID-19 pandemic, market interest rates have declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time, and declining further to 0.65% as of June 30, 2020. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 |
Exit of Mortgage Banking Acti_2
Exit of Mortgage Banking Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Exit of Mortgage Banking Activities | |
Schedule of rollforward of loans held for sale, showing loans originated for sale and loans sold into the secondary market | (in thousands) June 30, 2020 December 31, 2019 Loans held for sale, January 1 $ 30,710 $ 21,261 Loans originated for sale 79,847 573,306 Loans sold into the secondary market (110,557) (563,857) Loans held for sale, at end of period $ — $ 30,710 Loans originated for the Bank's portfolio $ 11,378 $ 114,561 For the six months ended June 30, For the three months ended June 30, ($ in thousands) 2020 2019 2020 2019 Statement of Operations: Net interest income $ 143 $ 340 $ — $ 193 Realized and unrealized gains on mortgage banking activity 1,036 3,737 — 2,296 Loan related fees and service charges 389 1,320 — 816 Total noninterest income 1,425 5,057 — 3,112 Salaries and benefits 928 3,063 — 1,456 Occupancy 20 154 — 75 All other operating expenses 490 1,050 — 582 Total noninterest expense 1,438 4,267 — 2,113 Pretax contribution 130 1,130 — 1,192 Income tax expense 36 311 — 328 After tax contribution $ 94 $ 819 $ — $ 864 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investment Securities | |
Schedule of available-for-sale securities and held-to-maturity | (in thousands) June 30, 2020 December 31, 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available for sale U.S. Government Agencies $ 77,835 $ 1,780 $ — $ 79,615 $ 66,428 $ 963 $ 79 $ 67,312 Mortgage-backed 188,099 4,029 302 191,826 139,918 2,848 67 142,699 Other investments 5,509 13 74 5,448 5,510 4 20 5,494 $ 271,443 $ 5,822 $ 376 $ 276,889 $ 211,856 $ 3,815 $ 166 $ 215,505 Held to maturity Corporate debentures $ 7,250 $ 65 $ 120 $ 7,195 $ 7,750 $ 147 $ - $ 7,897 |
Schedule of unrealized loss on investments | June 30, 2020 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ — $ — $ — $ — $ — $ — Mortgage-backed 106,747 302 — — 106,747 302 Other investments 1,444 56 2,991 18 4,435 74 $ 108,191 $ 358 $ 2,991 $ 18 $ 111,182 $ 376 Held to maturity Corporate debentures $ 880 $ 120 $ — $ — $ 880 $ 120 December 31, 2019 (in thousands) Less than 12 months 12 months or more Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available for sale U.S. Government Agencies $ 10,689 $ 79 $ - $ - $ 10,689 $ 79 Mortgage-backed 35,512 60 975 7 36,487 67 Other investments - - 2,990 20 2,990 20 $ 46,201 $ 139 $ 3,965 $ 27 $ 50,166 $ 166 Held to maturity Corporate debentures $ - $ - $ - $ - $ - $ - |
Schedule of investment securities by contractual maturity | (in thousands) June 30, 2020 December 31, 2019 Amortized Estimated Fair Amortized Estimated Fair Cost Value Cost Value Amounts maturing: One year or less $ 5,535 $ 5,634 $ 1,497 $ 1,500 After one through five years 46,780 48,337 49,166 50,048 After five through ten years 34,529 34,883 33,576 33,915 After ten years 191,849 195,230 135,367 137,939 $ 278,693 $ 284,084 $ 219,606 $ 223,402 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Leases | |
Schedule of loan portfolio segment | June 30, 2020 December 31, 2019 % of % of (in thousands) Total Total Total Total Real estate Construction and land $ 128,567 6.8 % $ 128,285 7.3 % Residential - first lien 409,402 21.6 437,409 25.1 Residential - junior lien 67,430 3.6 74,164 4.2 Total residential real estate 476,832 25.1 511,573 29.3 Commercial - owner occupied 244,802 12.9 241,795 13.9 Commercial - non-owner occupied 455,051 24.0 444,052 25.4 Total commercial real estate 699,853 36.9 685,847 39.3 Total real estate loans 1,305,252 68.7 1,325,705 75.9 Commercial loans and leases 1 352,999 18.6 372,872 21.4 Consumer 46,660 2.5 46,936 2.7 Paycheck Protection Program 193,719 10.2 — — Total loans and leases $ 1,898,630 100.0 % $ 1,745,513 100.0 % 1 Includes leases of $4,949 and $6,382 at June 30, 2020 and December 31, 2019, respectively. |
Schedule of acquired credit impaired loans | The following table documents changes in the accretable discount on acquired credit impaired loans at: For the six months ended For the three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 689 $ 877 $ 673 $ 835 Impaired loans acquired — — — — Accretion of fair value discounts (115) (110) (99) (68) Balance at end of period $ 574 $ 767 $ 574 $ 767 The table below presents the outstanding balances and related carrying amounts for all acquired credit impaired loans at the end of the respective periods: Contractually Required Payments Carrying (in thousands) Receivable Amount At June 30, 2020 $ 8,670 $ 6,993 At December 31, 2019 10,929 8,706 |
Credit Quality Assessment (Tabl
Credit Quality Assessment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Quality Assessment | |
Summary on allowance for credit loss activity | For the six months ended For the three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning balance $ 10,401 $ 9,873 $ 13,384 $ 8,754 Charge-offs (614) (3,728) (31) (874) Recoveries 124 140 3 130 Net charge-offs (490) (3,588) (28) (744) Provision for credit losses 6,445 2,835 3,000 1,110 Ending balance $ 16,356 $ 9,120 $ 16,356 $ 9,120 |
Schedule of loan balance and total credit exposure | As % of As % of Balance As % of As % of ($in millions) Loan Total Total Total with Total SBA PPP Loans Loan Category Balance Loans Exposure (1) Exposure Modifications Category Loan Relief Category CRE - retail $ 109.1 5.7 % $ 109.1 4.8 % $ 27.2 24.9 % $ — 0.0 % Hotels 60.8 3.2 % 62.8 2.8 % 52.7 86.6 % 1.5 2.5 % CRE - residential rental 47.8 2.5 % 47.8 2.1 % 8.8 18.4 % — 0.0 % Nursing and residential care 39.7 2.1 % 44.8 2.0 % 2.5 6.4 % 2.2 5.6 % Retail trade 23.6 1.2 % 38.3 1.7 % 2.1 8.9 % 12.9 54.7 % Restaurants and caterers 28.4 1.5 % 32.0 1.4 % 19.5 68.5 % 14.7 51.6 % Religious and similar organizations 29.1 1.5 % 31.1 1.4 % 3.3 11.4 % 6.1 20.8 % Arts, entertainment, and recreation 15.0 0.8 % 17.6 0.8 % 7.5 49.9 % 3.2 21.0 % Total - selected categories $ 353.6 18.6 % $ 383.5 17.0 % $ 123.6 35.0 % $ 40.5 11.5 % (1) Includes unused lines of credit, unfunded commitments, and letters of credit The breakdown by loan portfolio segment is as follows: As % of As % of ($ in millions) Loan Total Total "High Loan Portfolio Segment Balance Loans Impacts" Commercial real estate - non-owner occupied $ 206.9 10.9 % 58.5 % Commercial real estate - owner occupied 65.4 3.4 % 18.5 % Construction and land 51.9 2.7 % 14.7 % Commercial loans and leases 28.7 1.5 % 8.1 % Other 0.6 — % 0.2 % Total $ 353.6 18.6 % 100.0 % |
Allowance for loan and lease losses | At June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Allowance for credit losses: Six months ended: Beginning balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ — $ 10,401 Charge-offs — (33) — — (23) (549) (9) — (614) Recoveries — 3 52 — — 67 2 — 124 Provision for credit losses 269 488 394 1,018 2,645 1,435 196 — 6,445 Ending balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Three months ended: Beginning balance $ 1,192 $ 2,204 $ 863 $ 1,254 $ 4,130 $ 2,950 $ 791 $ — $ 13,384 Charge-offs — — — — (23) — (8) — (31) Recoveries — — 1 — — 1 1 — 3 Provision for credit losses 333 510 60 552 1,483 105 (43) — 3,000 Ending balance $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,525 $ 2,714 $ 924 $ 1,806 $ 5,590 $ 3,056 $ 741 $ — $ 16,356 Loans and leases: Ending balance $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 individually evaluated for impairment $ 347 $ 13,679 $ 1,365 $ 800 $ 576 $ 1,619 $ 102 $ — $ 18,488 collectively evaluated for impairment $ 128,220 $ 395,723 $ 66,065 $ 244,002 $ 454,475 $ 351,380 $ 46,558 $ 193,719 $ 1,880,142 At June 30, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Allowance for credit losses: Six months ended: Beginning balance $ 741 $ 1,170 $ 292 $ 735 $ 4,057 $ 2,644 $ 234 $ 9,873 Charge-offs (282) (362) (471) (44) (2,026) (525) (18) (3,728) Recoveries — — 104 — 3 32 1 140 Provision for credit losses 669 982 512 202 765 (456) 161 2,835 Ending balance $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Three months ended: Beginning balance $ 1,220 $ 1,372 $ 390 $ 817 $ 3,188 $ 1,543 $ 224 $ 8,754 Charge-offs (62) (238) (221) (44) — (298) (11) (874) Recoveries — — 99 — 1 30 — 130 Provision for credit losses (30) 656 169 120 (390) 420 165 1,110 Ending balance $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Allowance allocated to: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — collectively evaluated for impairment $ 1,128 $ 1,790 $ 437 $ 893 $ 2,799 $ 1,695 $ 378 $ 9,120 Loans and leases: Ending balance $ 115,753 $ 411,213 $ 80,303 $ 232,771 $ 442,449 $ 367,856 $ 50,675 $ 1,701,020 individually evaluated for impairment $ 933 $ 12,530 $ 914 $ 225 $ 2,608 $ 1,862 $ 287 $ 19,359 collectively evaluated for impairment $ 114,820 $ 398,683 $ 79,389 $ 232,546 $ 439,841 $ 365,994 $ 50,388 $ 1,681,661 At December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Allowance for credit losses: Beginning balance $ 741 $ 1,170 $ 292 $ 735 $ 4,057 $ 2,644 $ 234 $ 9,873 Charge-offs (282) (518) (532) (46) (2,026) (622) (210) (4,236) Recoveries 80 - 115 - 17 357 2 571 Provision for credit losses 717 1,604 603 99 920 (276) 526 4,193 Ending balance $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 2,103 $ 552 $ 10,401 Allowance allocated to: individually evaluated for impairment $ - $ - $ - $ - $ - $ 500 $ - $ 500 collectively evaluated for impairment $ 1,256 $ 2,256 $ 478 $ 788 $ 2,968 $ 1,603 $ 552 9,901 Loans and leases: Ending balance $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 individually evaluated for impairment $ 481 $ 13,131 $ 786 $ 566 $ 1,725 $ 2,360 $ 127 $ 19,176 collectively evaluated for impairment $ 127,804 $ 424,278 $ 73,378 $ 241,229 $ 442,327 $ 370,512 $ 46,809 $ 1,726,337 |
Schedule of credit risk profile | June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Credit quality indicators: Not classified $ 128,220 $ 396,686 $ 66,065 $ 241,501 $ 453,361 $ 341,285 $ 46,558 $ 193,719 $ 1,867,395 Special mention — — — 2,501 1,064 10,477 — — 14,042 Substandard 347 12,716 1,365 800 626 1,237 102 — 17,193 Doubtful — — — — — — — — — Total loans and leases $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Credit quality indicators: Not classified $ 127,804 $ 425,247 $ 73,378 $ 241,229 $ 442,327 $ 370,837 $ 46,809 $ 1,727,631 Special mention — — — — — — — — Substandard 481 12,162 786 566 1,725 2,035 127 17,882 Doubtful — — — — — — — — Total loans and leases $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 |
Schedule of aged analysis of past due loans | June 30, 2020 Commercial real estate Commercial Paycheck Construction Residential real estate owner non-owner loans Consumer Protection (in thousands) and land first lien junior lien occupied occupied and leases loans Program Total Analysis of past due loans and leases: Accruing loans and leases current $ 128,220 $ 394,957 $ 64,873 $ 244,002 $ 454,217 $ 351,466 $ 46,414 $ 193,719 $ 1,877,868 Accruing loans and leases past due: 30‑59 days past due — — 1,068 — 76 264 9 — 1,417 60‑89 days past due — 1,306 124 — 182 32 135 — 1,779 Greater than 90 days past due — 423 — — — — — — 423 Total past due — 1,729 1,192 — 258 296 144 — 3,619 Non-accrual loans and leases 1 347 12,716 1,365 800 576 1,237 102 — 17,143 Total loans and leases $ 128,567 $ 409,402 $ 67,430 $ 244,802 $ 455,051 $ 352,999 $ 46,660 $ 193,719 $ 1,898,630 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Analysis of past due loans and leases: Accruing loans and leases current $ 127,804 $ 418,668 $ 71,634 $ 241,062 $ 442,132 $ 370,877 $ 46,776 $ 1,718,953 Accruing loans and leases past due: 30‑59 days past due — 3,312 748 — 195 35 19 4,309 60‑89 days past due — 3,220 996 167 — — 14 4,397 Greater than 90 days past due — 47 — — — — — 47 Total past due — 6,579 1,744 167 195 35 33 8,753 Non-accrual loans and leases 1 481 12,162 786 566 1,725 1,960 127 17,807 Total loans and leases $ 128,285 $ 437,409 $ 74,164 $ 241,795 $ 444,052 $ 372,872 $ 46,936 $ 1,745,513 1 Included are acquired credit impaired loans where the Company amortizes the accretable discount into interest income, however these loans do not accrue interest based on the terms of the loan. |
Schedule of impaired loans | June 30, 2020 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 347 $ 13,679 $ 1,365 $ 800 $ 576 $ 1,619 $ 102 $ 18,488 With an allowance recorded — — — — — — — — With no related allowance recorded 347 13,679 1,365 800 576 1,619 102 18,488 Related allowance — — — — — — — - Unpaid principal 533 14,893 1,564 811 615 2,161 105 20,682 Six months ended: Average balance of impaired loans 667 16,052 1,765 817 648 2,544 105 22,598 Interest income recognized — 204 29 5 11 21 — 270 Three months ended: Average balance of impaired loans 666 16,026 1,758 816 647 2,538 105 22,556 Interest income recognized — 93 21 5 7 11 — 137 June 30, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 933 $ 12,530 $ 914 $ 225 $ 2,608 $ 1,862 $ 287 $ 19,359 With an allowance recorded — — — — — — — — With no related allowance recorded 933 12,530 914 225 2,608 1,862 287 19,359 Related allowance — — — — — — — — Unpaid principal 1,322 13,818 1,135 246 4,363 3,097 302 24,283 Six months ended: Average balance of impaired loans 1,459 15,171 1,385 247 4,480 3,536 313 26,591 Interest income recognized — 138 33 8 13 14 5 211 Three months ended: Average balance of impaired loans 1,454 15,154 1,370 247 4,457 3,525 313 26,520 Interest income recognized — 86 26 8 6 10 4 140 December 31, 2019 Commercial real estate Commercial Construction Residential real estate owner non-owner loans Consumer (in thousands) and land first lien junior lien occupied occupied and leases loans Total Impaired loans: Recorded investment 1 $ 481 $ 13,131 $ 786 $ 566 $ 1,725 $ 2,360 $ 127 $ 19,176 With an allowance recorded — — — — — 554 — 554 With no related allowance recorded 481 13,131 786 566 1,725 1,806 127 18,622 Related allowance — — — — — 500 — 500 Unpaid principal 667 14,371 986 583 2,023 3,584 130 22,344 Average balance of impaired loans 814 15,586 1,338 594 2,105 4,392 141 24,970 Interest income recognized 5 400 106 30 11 195 1 748 1 Included are acquired credit impaired loans where the Company amortizes the accretable discount into interest income, however these loans do not accrue interest based on the terms of the loan. |
Schedule of TDRs | June 30, 2020 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Residential real estate - first lien 2 $ 261 2 $ 963 $ 1,224 Commercial loans and leases 1 414 2 363 777 3 $ 675 4 $ 1,326 $ 2,001 December 31, 2019 Number Non-Accrual Number Accrual Total (dollars in thousands) of Loans Status of Loans Status TDRs Construction and land 1 $ 125 — $ — $ 125 Residential real estate - first lien 2 274 2 968 1,242 Commercial loans and leases 1 414 2 367 781 4 $ 813 4 $ 1,335 $ 2,148 |
Schedule of summary of TDR modifications | June 30, 2020 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Residential real estate - first lien Extension or other modification $ — $ 261 $ 963 $ 1,224 Commercial loans Extension or other modification — — 363 363 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 675 $ 1,326 $ 2,001 December 31, 2019 Not Performing Performing Related to Modified to Modified Total (in thousands) Allowance Terms Terms TDRs Construction and land Extension or other modification $ — $ 125 $ — $ 125 Residential real estate - first lien Extension or other modification — 274 968 1,242 Commercial loans Extension or other modification — — 367 367 Forbearance — 414 — 414 Total troubled debt restructured loans $ — $ 813 $ 1,335 $ 2,148 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives and Hedging Activities | |
Schedule of derivative financial instruments | June 30, 2020 Balance Sheet Notional Estimated Fair Value (dollars in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other assets and other liabilities $ 2,748 $ 404 $ — Matched interest rate swaps with counterparty Other assets and other liabilities $ 2,748 $ — $ 423 December 31, 2019 Balance Sheet Notional Estimated Fair Value (dollars in thousands) Location Amount Gain Loss Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other assets and other liabilities $ 2,853 $ 217 $ — Matched interest rate swaps with counterparty Other assets and other liabilities $ 2,853 $ — $ 228 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Other Intangible Assets | |
Schedule of goodwill | The table below shows goodwill balances at: (in thousands) Goodwill: December 31, 2019 $ 65,949 Goodwill impairment (34,500) June 30, 2020 $ 31,449 |
Schedule of gross carrying amount and accumulated amortization of other intangible assets | June 30, 2020 Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) Amortizing intangible assets: Core deposit intangible $ 16,135 $ 9,045 $ 7,090 3.2 December 31, 2019 Weighted Gross Net Average Carrying Accumulated Carrying Remaining Life (in thousands) Amount Amortization Amount (Years) Amortizing intangible assets: Core deposit intangible $ 16,135 $ 7,666 $ 8,469 3.7 |
Schedule of estimated future amortization expense | Estimated future amortization expense for amortizing intangibles are as follows: (in thousands) 2020 $ 1,295 2021 2,326 2022 1,915 2023 1,298 2024 256 Total amortizing intangible assets $ 7,090 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Schedule of operating leases | Operating leases included the following at: (in thousands) June 30, 2020 December 31, 2019 Operating Leases Operating leases ROU assets $ 15,312 $ 14,092 Operating lease liabilities $ 15,805 $ 14,507 |
Schedule of components of lease expense | The components of lease expense were as follows: Six months ended June 30, Three months ended June 30, (in thousands) 2020 2019 2020 2019 Operating lease cost $ 784 $ 1,080 $ 420 $ 530 Sublease income (344) (293) (176) (108) Amortization of ROU assets 77 82 32 82 $ 517 $ 869 $ 276 $ 504 |
Schedule of lease liability maturities | Lease liability maturities are as follows: (in thousands) 2020 $ 855 2021 1,662 2022 1,520 2023 1,372 2024 1,170 Thereafter 13,033 Total future lease payments $ 19,612 Discount of cash flows (3,807) Present value on net future lease payments $ 15,805 Weighted average remaining term in years 6.47 Weighted average discount rate 2.89 % |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deposits | |
Schedule of deposits | June 30, 2020 December 31, 2019 % of % of (dollars in thousands) Amount Total Amount Total Noninterest-bearing demand $ 671,598 37 % $ 468,975 27 % Interest-bearing checking 186,768 10 183,447 11 Money market accounts 383,031 21 360,711 21 Savings 146,148 7 130,141 7 Certificates of deposit $250 and over 65,769 4 77,782 5 Certificates of deposit under $250 377,360 21 493,309 29 Total deposits $ 1,830,674 100 % $ 1,714,365 100 % |
Stock Options and Stock Awards
Stock Options and Stock Awards (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock Options and Stock Awards | |
Schedule of stock options, activity | June 30, 2020 December 31, 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Balance at January 1, 25,000 $ 14.54 15,268 $ 8.76 Granted — — 25,000 14.54 Exercised — — (13,418) 8.58 Forfeited — — (1,850) 10.10 Balance at period end 25,000 $ 14.54 25,000 $ 14.54 Exercisable at period end 8,337 $ 14.54 — $ — Weighted average fair value of options granted during the year N/A $ 5.83 |
Schedule of restricted stock and stock units activity | A summary of the activity for the Company’s RSUs for the periods indicated is presented in the following table: June 30, 2020 December 31, 2019 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Balance at January 1, 11,032 $ 17.48 9,731 $ 17.29 Granted 156,947 14.87 26,500 15.16 Vested (834) 19.85 (6,699) 16.13 Forfeited — (18,500) 14.54 Balance at period end 167,145 $ 15.02 11,032 $ 17.48 |
Schedule of unrecognized pre-tax compensation expense | At June 30, 2020, based on RSUs outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested RSUs was $2.0 million. Based upon the contractual terms, this expense is expected to be recognized as follows: (in thousands) 2020 $ 269 2021 509 2022 480 2023 390 2024 363 2025 32 $ 2,043 |
Stock-based compensation expense | Six months ended Three months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense Related to the issuance of restricted stock and RSUs $ 217 $ 112 $ 126 $ 62 Related to the issuance of stock options 24 — 12 — Director compensation paid in stock 137 62 — — Total stock-based compensation expense $ 378 $ 174 $ 138 $ 62 |
Net (Loss) Income per Common _2
Net (Loss) Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Net (Loss) Income per Common Share | |
Schedule of basic and diluted net (loss) income per common share | Six months ended Three months ended June 30, June 30, (dollars in thousands, except per share data) 2020 2019 2020 2019 Net (loss) income available to common stockholders (numerator) $ (26,066) $ 6,344 $ (29,409) $ 2,088 BASIC Basic average common shares outstanding (denominator) 18,791,378 19,056,953 18,715,669 19,061,164 Basic (loss) income per common share $ (1.39) $ 0.33 $ (1.57) $ 0.11 DILUTED Average common shares outstanding 18,791,378 19,056,953 18,715,669 19,061,164 Dilutive effect of common stock equivalents — 14,367 — 6,460 Diluted average common shares outstanding (denominator) 18,791,378 19,071,320 18,715,669 19,067,624 Diluted (loss) income per common share $ (1.39) $ 0.33 $ (1.57) $ 0.11 Because the Company reported a loss for both 2020 periods, common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share. 81,761 — 59,466 — Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above 25,000 25,000 25,000 25,000 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital | |
Schedule of Bancorp's and the Bank's capital | To be well capitalized under the FDICIA For capital prompt corrective Actual adequacy purposes (1) action provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2020: Total capital (to risk-weighted assets) Howard Bank $ 256,374 14.00 % $ 146,503 8.00 % $ 183,129 10.00 % Howard Bancorp $ 258,943 14.09 % $ 147,022 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 240,018 13.11 % $ 82,408 4.50 % $ 119,034 6.50 % Howard Bancorp $ 214,249 11.66 % $ 82,700 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 240,018 13.11 % $ 109,877 6.00 % $ 146,503 8.00 % Howard Bancorp $ 214,249 11.66 % $ 110,267 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 240,018 10.33 % $ 92,931 4.00 % $ 116,163 5.00 % Howard Bancorp $ 214,249 9.18 % $ 93,308 4.00 % N/A As of December 31, 2019: Total capital (to risk-weighted assets) Howard Bank $ 238,384 12.86 % $ 148,314 8.00 % $ 185,392 10.00 % Howard Bancorp $ 247,761 13.14 % $ 150,872 8.00 % N/A Common equity tier 1 capital (to risk-weighted assets) Howard Bank $ 227,983 12.30 % $ 83,427 4.50 % $ 120,505 6.50 % Howard Bancorp $ 209,119 11.09 % $ 84,866 4.50 % N/A Tier 1 capital (to risk-weighted assets) Howard Bank $ 227,983 12.30 % $ 111,235 6.00 % $ 148,314 8.00 % Howard Bancorp $ 209,119 11.09 % $ 113,154 6.00 % N/A Tier 1 capital (to average assets) (Leverage ratio) Howard Bank $ 227,983 10.43 % $ 87,434 4.00 % $ 109,293 5.00 % Howard Bancorp $ 209,119 9.55 % $ 87,599 4.00 % N/A (1) Amounts shown exclude the capital conservation buffer of 2.50%. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, Bancorp is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the FRB (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to Bancorp, the Company calculates these ratios for its own planning and monitoring purposes. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value | |
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | June 30, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 79,615 $ — $ 79,615 $ — Mortgage-backed securities 191,826 — 191,826 — Other investments 5,448 — 5,448 — Loans held for investment 3,346 — 3,346 — Interest rate swap assets 404 — 404 — Liabilities Interest rate swap liabilities 423 — 423 — December 31, 2019 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Assets Available for sale securities: U.S. Government agencies $ 67,312 $ — $ 67,312 $ — Mortgage-backed securities 142,699 — 142,699 — Other investments 5,494 — 5,494 — Loans held for sale 30,710 — 30,710 — Loans held for investment 997 — 997 — Rate lock commitments 60 — — 60 Interest rate swap assets 217 — 217 — Liabilities Interest rate swap liabilities 228 — 228 — |
Schedule of reconciliation of the assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | June 30, December 31, (in thousands) 2020 2019 Balance, beginning of period $ 60 $ 126 Net losses included in realized and unrealized gains on mortgage banking activity in noninterest income (60) (66) Balance, end of period $ — $ 60 |
Schedule of assets under fair value option | June 30, 2020 Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference Loans held for investment 3,346 3,283 63 December 31, 2019 Carrying Aggregate Fair Value Unpaid (in thousands) Amount Principal Difference Loans held for sale $ 30,710 $ 29,969 $ 741 Loans held for investment 997 966 31 |
Schedule of impaired loans measured on a nonrecurring basis | June 30, 2020 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 2,137 $ — $ — $ 2,137 Impaired loans: Construction and land 347 — — 347 Residential - first lien 13,679 — — 13,679 Residential - junior lien 1,365 — — 1,365 Commercial - owner occupied 800 — — 800 Commercial - non-owner occupied 576 — — 576 Commercial loans and leases 1,619 — — 1,619 Consumer 102 — — 102 Total impaired loans 18,488 18,488 December 31, 2019 Quoted Price in Significant Active Markets Other Significant Carrying for Identical Observable Unobservable Value Assets Inputs Inputs (in thousands) (Fair Value) (Level 1) (Level 2) (Level 3) Other real estate owned $ 3,098 $ — $ — $ 3,098 Impaired loans: Construction and land 481 — — 481 Residential - first lien 13,131 — — 13,131 Residential - junior lien 786 — — 786 Commercial - owner occupied 566 — — 566 Commercial - non-owner occupied 1,725 — — 1,725 Commercial loans and leases 1,860 — — 1,860 Consumer 127 — — 127 Total impaired loans 18,676 18,676 |
Schedule of estimated fair value of the Company's financial instruments | June 30, 2020 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 276,889 $ 276,889 $ — $ 276,889 $ — Held to maturity securities 7,250 7,195 — — 7,195 Nonmarketable equity securities 12,592 12,592 — 12,592 — Loans held for investment 3,346 3,346 — 3,346 — Loans and leases 1 1,878,928 1,889,696 — — 1,889,696 Interest rate swap 404 404 — 404 — Financial Liabilities Deposits 1,830,674 1,828,613 — 1,828,613 — Customer repos and other borrowings 37,834 37,834 5,321 FHLB advances 246,000 249,079 — 249,079 — Subordinated debt 28,339 28,339 — 28,339 — Interest rate swap 423 423 — 423 — December 31, 2019 Quoted Price in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Fair Assets Inputs Inputs (in thousands) Amount Value (Level 1) (Level 2) (Level 3) Financial Assets Available for sale securities $ 215,505 $ 215,505 $ — $ 215,505 $ — Held to maturity securities 7,750 7,897 — — 7,897 Nonmarketable equity securities 14,152 14,152 — 14,152 — Loans held for sale 30,710 30,710 — 30,710 — Loans held for investment 997 997 — 997 — Rate lock commitments 60 60 — — 60 Loans and leases 1 1,734,115 1,735,013 — — 1,735,013 Interest rate swap 217 217 — 217 — Financial Liabilities Deposits 1,714,365 1,713,081 — 1,713,081 — Customer repos and other borrowings 6,127 6,127 6,127 FHLB advances 285,000 288,731 — 288,731 — Subordinated debt 28,241 28,241 — 28,241 — Interest rate swap 228 228 — 228 — (1) Carrying amount is net of unearned income and allowance for loan and lease losses. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loans were measured using an exit price notion at periods presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Mar. 03, 2020 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 16, 2020 | Dec. 15, 2005subsidiaryshares |
Summary of Significant Accounting Policies [Line Items] | |||||||
Goodwill impairment | $ | $ 34,500 | $ 0 | $ 34,500 | $ 0 | |||
Howard Bank | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares Per Share | shares | 2 | ||||||
Number of subsidiaries | 9 | ||||||
Number of subsidiaries to hold foreclosed real estate | 6 | ||||||
Number of inactive subsidiaries | 3 | ||||||
Number of subsidiaries own and manage real estate used for corporate purposes | 2 | ||||||
Number of subsidiaries holds historic tax credit investments | 1 | ||||||
10-year Treasury bond | Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Interest rate | 1.00% | 0.65% | 0.65% | ||||
Federal Open Market Committee | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Interest rate range | 0.50% | ||||||
Federal Open Market Committee | Maximum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Interest rate | 1.25% | 0.25% | |||||
Federal Open Market Committee | Minimum [Member] | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Interest rate | 1.00% | 0.00% |
Exit of Mortgage Banking Acti_3
Exit of Mortgage Banking Activities (Details) - Mortgage Banking Activities | Dec. 18, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)employee | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loans held for sale, January 1 | $ 30,710,000 | $ 21,261,000 | $ 21,261,000 | ||||
Loans originated for sale | $ 79,847,000 | 573,306,000 | |||||
Loans sold into the secondary market | (110,557,000) | (563,857,000) | |||||
Loans held for sale, at end of period | 0 | $ 30,710,000 | 0 | 30,710,000 | |||
Loans originated for the Bank's portfolio | 11,378,000 | 114,561,000 | 11,378,000 | $ 114,561,000 | |||
Statement of Operations: | |||||||
Net interest income | 0 | $ 193,000 | 143,000 | 340,000 | |||
Realized and unrealized gains on mortgage banking activity | 0 | 2,296,000 | 1,036,000 | 3,737,000 | |||
Loan related fees and service charges | 0 | 816,000 | 389,000 | 1,320,000 | |||
Total noninterest income | 0 | 3,112,000 | 1,425,000 | 5,057,000 | |||
Salaries and benefits | 0 | 1,456,000 | 928,000 | 3,063,000 | |||
Occupancy | 0 | 75,000 | 20,000 | 154,000 | |||
All other operating expenses | 0 | 582,000 | 490,000 | 1,050,000 | |||
Total noninterest expense | 0 | 2,113,000 | 1,438,000 | 4,267,000 | |||
Pretax contribution | 0 | 1,192,000 | 130,000 | 1,130,000 | |||
Income tax expense | 0 | 328,000 | 36,000 | 311,000 | |||
After tax contribution | $ 0 | $ 864,000 | $ 94,000 | $ 819,000 | |||
Discontinued operations held for sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from disposal of business | $ 750,000 | ||||||
Transition period | 45 days | ||||||
Statement of Operations: | |||||||
Number of employees | employee | 91 | ||||||
Severance Costs | $ 0 | ||||||
Exit costs associated with change in control and retention agreements | $ 288,000 | ||||||
Exit costs associated with lease terminations | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available for sale | ||
Amortized Cost | $ 271,443 | $ 211,856 |
Gross Unrealized Gains | 5,822 | 3,815 |
Gross Unrealized Losses | 376 | 166 |
Estimated Fair Value | 276,889 | 215,505 |
Held to maturity | ||
Amortized Cost | 7,250 | 7,750 |
Estimated Fair Value | 7,195 | 7,897 |
Other Investments [Member] | ||
Available for sale | ||
Amortized Cost | 5,509 | 5,510 |
Gross Unrealized Gains | 13 | 4 |
Gross Unrealized Losses | 74 | 20 |
Estimated Fair Value | 5,448 | 5,494 |
US Government Agencies [Member] | ||
Available for sale | ||
Amortized Cost | 77,835 | 66,428 |
Gross Unrealized Gains | 1,780 | 963 |
Gross Unrealized Losses | 0 | 79 |
Estimated Fair Value | 79,615 | 67,312 |
Collateralized Mortgage Backed Securities [Member] | ||
Available for sale | ||
Amortized Cost | 188,099 | 139,918 |
Gross Unrealized Gains | 4,029 | 2,848 |
Gross Unrealized Losses | 302 | 67 |
Estimated Fair Value | 191,826 | 142,699 |
Corporate Debt Securities [Member] | ||
Held to maturity | ||
Amortized Cost | 7,250 | 7,750 |
Gross Unrealized Gains | 65 | 147 |
Gross Unrealized Losses | 120 | |
Estimated Fair Value | $ 7,195 | $ 7,897 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | $ 108,191 | $ 46,201 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 358 | 139 |
Individual securities, 12 months or more, Fair Value | 2,991 | 3,965 |
Individual securities, 12 months or more, Gross Unrealized Losses | 18 | 27 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 111,182 | 50,166 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 376 | 166 |
US Government Agencies [Member] | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 0 | 10,689 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 0 | 79 |
Individual securities, 12 months or more, Fair Value | 0 | |
Individual securities, 12 months or more, Gross Unrealized Losses | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 0 | 10,689 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 0 | 79 |
Collateralized Mortgage Backed Securities [Member] | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 106,747 | 35,512 |
Individual securities, Less than 12 months, Gross Unrealized Losses | 302 | 60 |
Individual securities, 12 months or more, Fair Value | 0 | 975 |
Individual securities, 12 months or more, Gross Unrealized Losses | 0 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 106,747 | 36,487 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | 302 | 67 |
Corporate Debt Securities [Member] | ||
Held to maturity | ||
Individual securities, Less than 12 months, Fair Value | 880 | |
Individual securities, Less than 12 months, Gross Unrealized Losses | 120 | |
Individual securities, 12 months or more, Fair Value | 0 | |
Individual securities, 12 months or more, Gross Unrealized Losses | 0 | |
Individual securities, total, Fair Value | 880 | |
Individual securities, total, Gross Unrealized Losses | 120 | |
Other Investments [Member] | ||
Available for sale | ||
Individual securities, Less than 12 months, Fair Value | 1,444 | |
Individual securities, Less than 12 months, Gross Unrealized Losses | 56 | |
Individual securities, 12 months or more, Fair Value | 2,991 | 2,990 |
Individual securities, 12 months or more, Gross Unrealized Losses | 18 | 20 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | 4,435 | 2,990 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss, Total | $ 74 | $ 20 |
Investment Securities - Contrac
Investment Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investment Securities | ||
One year or less, Amortized Cost | $ 5,535 | $ 1,497 |
After one through five years, Amortized Cost | 46,780 | 49,166 |
After five through ten years, Amortized Cost | 34,529 | 33,576 |
After ten years, Amortized Cost | 191,849 | 135,367 |
Amortized Cost | 278,693 | 219,606 |
One year or less, Estimated Fair Value | 5,634 | 1,500 |
After one through five years, Estimated Fair Value | 48,337 | 50,048 |
After five through ten years, Estimated Fair Value | 34,883 | 33,915 |
After ten years, Estimated Fair Value | 195,230 | 137,939 |
Estimated Fair Value | $ 284,084 | $ 223,402 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | Jun. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Investment Securities | ||
Number of securities with unrealized losses | security | 22 | 15 |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value | $ | $ 99.7 | $ 11.6 |
Loans and Leases - Loan Portfol
Loans and Leases - Loan Portfolio Segment (Details) - USD ($) | Jun. 30, 2020 | Apr. 27, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 1,898,630,000 | $ 1,745,513,000 | $ 1,701,020,000 | |
Loans and Leases, Net Percent | 100.00% | 100.00% | ||
Construction and land [Member] | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 128,567,000 | $ 128,285,000 | 115,753,000 | |
Loans and Leases, Net Percent | 6.80% | 7.30% | ||
Residential - first lien | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 409,402,000 | $ 437,409,000 | 411,213,000 | |
Loans and Leases, Net Percent | 21.60% | 25.10% | ||
Residential - junior lien | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 67,430,000 | $ 74,164,000 | 80,303,000 | |
Loans and Leases, Net Percent | 3.60% | 4.20% | ||
Total residential real estate | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 476,832,000 | $ 511,573,000 | ||
Loans and Leases, Net Percent | 25.10% | 29.30% | ||
Commercial - owner occupied | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 244,802,000 | $ 241,795,000 | 232,771,000 | |
Loans and Leases, Net Percent | 12.90% | 13.90% | ||
Commercial - non-owner occupied | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 455,051,000 | $ 444,052,000 | 442,449,000 | |
Loans and Leases, Net Percent | 24.00% | 25.40% | ||
Total commercial real estate | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 699,853,000 | $ 685,847,000 | ||
Loans and Leases, Net Percent | 36.90% | 39.30% | ||
Total real estate loans | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 1,305,252,000 | $ 1,325,705,000 | ||
Loans and Leases, Net Percent | 68.70% | 75.90% | ||
Commercial loans and leases | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 352,999,000 | $ 372,872,000 | ||
Loans and Leases, Net Percent | 18.60% | 21.40% | ||
Consumer | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 46,660,000 | $ 46,936,000 | $ 50,675,000 | |
Loans and Leases, Net Percent | 2.50% | 2.70% | ||
Paycheck Protection Program | ||||
Loans and Leases Receivable [Line Items] | ||||
Loans, net of unamortized deferred fees | $ 193,719,000 | $ 193,700,000 | $ 0 | |
Loans and Leases, Net Percent | 10.20% | 0.00% |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Details) $ in Thousands | Apr. 27, 2020USD ($)loan | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Loans and Leases Receivable [Line Items] | |||||
Operating Lease, Lease Income | $ 6,382 | $ 4,949 | |||
Loan Processing Fee | 3,900 | $ 1,300 | |||
Loans, net of unamortized deferred fees | 1,745,513 | 1,898,630 | 1,745,513 | $ 1,701,020 | |
Paycheck Protection Program | |||||
Loans and Leases Receivable [Line Items] | |||||
Number of applications approved | loan | 1,028 | ||||
Loan Processing Fee | 5,300 | ||||
Loans | $ 199,000 | ||||
Loans, net of unamortized deferred fees | $ 193,700 | 0 | 193,719 | 0 | |
Unamortized loan processing fees | 6,000 | ||||
Unamortized loan origination costs | 700 | ||||
Total residential real estate | |||||
Loans and Leases Receivable [Line Items] | |||||
Loans, net of unamortized deferred fees | $ 511,573 | $ 476,832 | $ 511,573 |
Loans and Leases - Accretable D
Loans and Leases - Accretable Discount (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Balance at beginning of period | $ 1,745,513 | |||
Balance at end of period | $ 1,898,630 | $ 1,701,020 | 1,898,630 | $ 1,701,020 |
Impaired Financing Receivable [Member] | ||||
Balance at beginning of period | 673 | 835 | 689 | 877 |
Impaired loans acquired | 0 | 0 | 0 | 0 |
Accretion of fair value discounts | (99) | (68) | (115) | (110) |
Balance at end of period | $ 574 | $ 767 | $ 574 | $ 767 |
Loans and Leases - Impaired (De
Loans and Leases - Impaired (Details) - Impaired Loans Acquired - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Contractually Required Payments Receivable | $ 8,670 | $ 10,929 |
Carrying Amount | $ 6,993 | $ 8,706 |
Credit Quality Assessment - All
Credit Quality Assessment - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Apr. 27, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | $ 13,384 | $ 8,754 | $ 10,401 | $ 9,873 | $ 9,873 | |
Allowance for credit losses, Charge-offs | (31) | (874) | (614) | (3,728) | ||
Allowance for credit losses, Recoveries | 3 | 130 | 124 | 140 | ||
Allowance for credit losses, Net charge-offs | (28) | (744) | (490) | (3,588) | ||
Provision for credit losses | 3,000 | 1,110 | 6,445 | 2,835 | ||
Allowance for credit losses, Ending balance | 16,356 | 9,120 | 16,356 | 9,120 | 10,401 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 16,356 | 9,120 | 16,356 | 9,120 | ||
Total loans and leases | 1,898,630 | 1,701,020 | 1,898,630 | 1,701,020 | 1,745,513 | |
Loans individually evaluated for impairment | 18,488 | 19,359 | 18,488 | 19,359 | ||
Loans collectively evaluated for impairment | 1,880,142 | 1,681,661 | 1,880,142 | 1,681,661 | ||
Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 1,898,630 | 1,898,630 | 1,745,513 | |||
Construction and land [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 1,192 | 1,220 | 1,256 | 741 | 741 | |
Allowance for credit losses, Charge-offs | 0 | (62) | 0 | (282) | (282) | |
Allowance for credit losses, Recoveries | 0 | 0 | 0 | 0 | 80 | |
Provision for credit losses | 333 | (30) | 269 | 669 | 717 | |
Allowance for credit losses, Ending balance | 1,525 | 1,128 | 1,525 | 1,128 | 1,256 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 1,525 | 1,128 | 1,525 | 1,128 | 1,256 | |
Total loans and leases | 128,567 | 115,753 | 128,567 | 115,753 | 128,285 | |
Loans individually evaluated for impairment | 347 | 933 | 347 | 933 | 481 | |
Loans collectively evaluated for impairment | 128,220 | 114,820 | 128,220 | 114,820 | 127,804 | |
Construction and land [Member] | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 128,567 | 128,567 | 128,285 | |||
Residential - first lien | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 2,204 | 1,372 | 2,256 | 1,170 | 1,170 | |
Allowance for credit losses, Charge-offs | 0 | (238) | (33) | (362) | (518) | |
Allowance for credit losses, Recoveries | 0 | 0 | 3 | 0 | ||
Provision for credit losses | 510 | 656 | 488 | 982 | 1,604 | |
Allowance for credit losses, Ending balance | 2,714 | 1,790 | 2,714 | 1,790 | 2,256 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 2,714 | 1,790 | 2,714 | 1,790 | 2,256 | |
Total loans and leases | 409,402 | 411,213 | 409,402 | 411,213 | 437,409 | |
Loans individually evaluated for impairment | 13,679 | 12,530 | 13,679 | 12,530 | 13,131 | |
Loans collectively evaluated for impairment | 395,723 | 398,683 | 395,723 | 398,683 | 424,278 | |
Residential - first lien | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 409,402 | 409,402 | 437,409 | |||
Residential - junior lien | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 863 | 390 | 478 | 292 | 292 | |
Allowance for credit losses, Charge-offs | 0 | (221) | 0 | (471) | (532) | |
Allowance for credit losses, Recoveries | 1 | 99 | 52 | 104 | 115 | |
Provision for credit losses | 60 | 169 | 394 | 512 | 603 | |
Allowance for credit losses, Ending balance | 924 | 437 | 924 | 437 | 478 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 924 | 437 | 924 | 437 | 478 | |
Total loans and leases | 67,430 | 80,303 | 67,430 | 80,303 | 74,164 | |
Loans individually evaluated for impairment | 1,365 | 914 | 1,365 | 914 | 786 | |
Loans collectively evaluated for impairment | 66,065 | 79,389 | 66,065 | 79,389 | 73,378 | |
Residential - junior lien | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 67,430 | 67,430 | 74,164 | |||
Commercial - owner occupied | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 1,254 | 817 | 788 | 735 | 735 | |
Allowance for credit losses, Charge-offs | 0 | (44) | 0 | (44) | (46) | |
Allowance for credit losses, Recoveries | 0 | 0 | 0 | 0 | ||
Provision for credit losses | 552 | 120 | 1,018 | 202 | 99 | |
Allowance for credit losses, Ending balance | 1,806 | 893 | 1,806 | 893 | 788 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 1,806 | 893 | 1,806 | 893 | 788 | |
Total loans and leases | 244,802 | 232,771 | 244,802 | 232,771 | 241,795 | |
Loans individually evaluated for impairment | 800 | 225 | 800 | 225 | 566 | |
Loans collectively evaluated for impairment | 244,002 | 232,546 | 244,002 | 232,546 | 241,229 | |
Commercial - owner occupied | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 244,802 | 244,802 | 241,795 | |||
Commercial - non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 4,130 | 3,188 | 2,968 | 4,057 | 4,057 | |
Allowance for credit losses, Charge-offs | (23) | 0 | (23) | (2,026) | (2,026) | |
Allowance for credit losses, Recoveries | 0 | 1 | 0 | 3 | 17 | |
Provision for credit losses | 1,483 | (390) | 2,645 | 765 | 920 | |
Allowance for credit losses, Ending balance | 5,590 | 2,799 | 5,590 | 2,799 | 2,968 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 5,590 | 2,799 | 5,590 | 2,799 | 2,968 | |
Total loans and leases | 455,051 | 442,449 | 455,051 | 442,449 | 444,052 | |
Loans individually evaluated for impairment | 576 | 2,608 | 576 | 2,608 | 1,725 | |
Loans collectively evaluated for impairment | 454,475 | 439,841 | 454,475 | 439,841 | 442,327 | |
Commercial - non-owner occupied | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 455,051 | 455,051 | 444,052 | |||
Commercial Loan and Leases [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 2,950 | 1,543 | 2,103 | 2,644 | 2,644 | |
Allowance for credit losses, Charge-offs | 0 | (298) | (549) | (525) | (622) | |
Allowance for credit losses, Recoveries | 1 | 30 | 67 | 32 | 357 | |
Provision for credit losses | 105 | 420 | 1,435 | (456) | (276) | |
Allowance for credit losses, Ending balance | 3,056 | 1,695 | 3,056 | 1,695 | 2,103 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 500 | |
Allowance allocated to Collectively Evaluated for Impairment | 3,056 | 1,695 | 3,056 | 1,695 | 1,603 | |
Total loans and leases | 352,999 | 367,856 | 352,999 | 367,856 | 372,872 | |
Loans individually evaluated for impairment | 1,619 | 1,862 | 1,619 | 1,862 | 2,360 | |
Loans collectively evaluated for impairment | 351,380 | 365,994 | 351,380 | 365,994 | 370,512 | |
Commercial Loan and Leases [Member] | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 352,999 | 352,999 | 372,872 | |||
Consumer | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 791 | 224 | 552 | 234 | 234 | |
Allowance for credit losses, Charge-offs | (8) | (11) | (9) | (18) | (210) | |
Allowance for credit losses, Recoveries | 1 | 0 | 2 | 1 | 2 | |
Provision for credit losses | (43) | 165 | 196 | 161 | 526 | |
Allowance for credit losses, Ending balance | 741 | 378 | 741 | 378 | 552 | |
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | ||
Allowance allocated to Collectively Evaluated for Impairment | 741 | 378 | 741 | 378 | 552 | |
Total loans and leases | 46,660 | 50,675 | 46,660 | 50,675 | 46,936 | |
Loans individually evaluated for impairment | 102 | 287 | 102 | 287 | 127 | |
Loans collectively evaluated for impairment | 46,558 | $ 50,388 | 46,558 | $ 50,388 | 46,809 | |
Consumer | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | 46,660 | 46,660 | 46,936 | |||
Paycheck Protection Program | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for credit losses, Beginning balance | 0 | 0 | ||||
Allowance for credit losses, Charge-offs | 0 | 0 | ||||
Allowance for credit losses, Recoveries | 0 | 0 | ||||
Provision for credit losses | 0 | 0 | ||||
Allowance for credit losses, Ending balance | 0 | 0 | 0 | |||
Allowance allocated to Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance allocated to Collectively Evaluated for Impairment | 0 | 0 | ||||
Total loans and leases | 193,719 | 193,719 | $ 0 | $ 193,700 | ||
Loans individually evaluated for impairment | 0 | 0 | ||||
Loans collectively evaluated for impairment | 193,719 | 193,719 | ||||
Paycheck Protection Program | Legacy Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans and leases | $ 193,719 | $ 193,719 |
Credit Quality Assessment - Loa
Credit Quality Assessment - Loan balances and total credit exposures (Details) - USD ($) $ in Millions | Jul. 24, 2020 | Jun. 30, 2020 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 353.6 | |
As % of Total Loans | 18.60% | |
Total exposure | $ 383.5 | |
AS % of Total Exposure | 17.00% | |
Loan Balance with Modification | $ 123.6 | |
As % of Loan Category | 35.00% | |
SBA PPP Loan Balance | $ 40.5 | |
SBA PP % Loan Category | 11.50% | |
Total high impact | 100.00% | |
CRE Retail [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 109.1 | |
As % of Total Loans | 5.70% | |
Total exposure | $ 109.1 | |
AS % of Total Exposure | 4.80% | |
Loan Balance with Modification | $ 27.2 | |
As % of Loan Category | 24.90% | |
SBA PPP Loan Balance | $ 0 | |
SBA PP % Loan Category | 0.00% | |
Hotel [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 60.8 | |
As % of Total Loans | 3.20% | |
Total exposure | $ 62.8 | |
AS % of Total Exposure | 2.80% | |
Loan Balance with Modification | $ 52.7 | |
As % of Loan Category | 86.60% | |
SBA PPP Loan Balance | $ 1.5 | |
SBA PP % Loan Category | 2.50% | |
CRE - Residential Rental [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 47.8 | |
As % of Total Loans | 2.50% | |
Total exposure | $ 47.8 | |
AS % of Total Exposure | 2.10% | |
Loan Balance with Modification | $ 8.8 | |
As % of Loan Category | 18.40% | |
SBA PPP Loan Balance | $ 0 | |
SBA PP % Loan Category | 0.00% | |
Nursing and Residential Care [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 39.7 | |
As % of Total Loans | 2.10% | |
Total exposure | $ 44.8 | |
AS % of Total Exposure | 2.00% | |
Loan Balance with Modification | $ 2.5 | |
As % of Loan Category | 6.40% | |
SBA PPP Loan Balance | $ 2.2 | |
SBA PP % Loan Category | 5.60% | |
Retail Trade {Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 23.6 | |
As % of Total Loans | 1.20% | |
Total exposure | $ 38.3 | |
AS % of Total Exposure | 1.70% | |
Loan Balance with Modification | $ 2.1 | |
As % of Loan Category | 8.90% | |
SBA PPP Loan Balance | $ 12.9 | |
SBA PP % Loan Category | 54.70% | |
Restaurants and Caterers [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 28.4 | |
As % of Total Loans | 1.50% | |
Total exposure | $ 32 | |
AS % of Total Exposure | 1.40% | |
Loan Balance with Modification | $ 19.5 | |
As % of Loan Category | 68.50% | |
SBA PPP Loan Balance | $ 14.7 | |
SBA PP % Loan Category | 51.60% | |
Religious and similar Organizations [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 29.1 | |
As % of Total Loans | 1.50% | |
Total exposure | $ 31.1 | |
AS % of Total Exposure | 1.40% | |
Loan Balance with Modification | $ 3.3 | |
As % of Loan Category | 11.40% | |
SBA PPP Loan Balance | $ 6.1 | |
SBA PP % Loan Category | 20.80% | |
Arts, Entertainment, and Recreation [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 15 | |
As % of Total Loans | 0.80% | |
Total exposure | $ 17.6 | |
AS % of Total Exposure | 0.80% | |
Loan Balance with Modification | $ 7.5 | |
As % of Loan Category | 49.90% | |
SBA PPP Loan Balance | $ 3.2 | |
SBA PP % Loan Category | 21.00% | |
Non-owner-Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 206.9 | |
As % of Total Loans | 10.90% | |
Total high impact | 58.50% | |
Hight impact portfolio excluded | 55.00% | |
Owner-occupied Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 65.4 | |
As % of Total Loans | 3.40% | |
Total high impact | 18.50% | |
Commercial Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 51.9 | |
As % of Total Loans | 2.70% | |
Total high impact | 14.70% | |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 28.7 | |
As % of Total Loans | 1.50% | |
Total high impact | 8.10% | |
Others [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loan Balance | $ 0.6 | |
As % of Total Loans | 0.00% | |
Total high impact | 0.20% |
Credit Quality Assessment - Int
Credit Quality Assessment - Internally Assigned Risk Assignments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Apr. 27, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | $ 1,898,630 | $ 1,745,513 | $ 1,701,020 | |
Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 1,898,630 | 1,745,513 | ||
Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 1,867,395 | 1,727,631 | ||
Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 14,042 | 0 | ||
Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 17,193 | 17,882 | ||
Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Construction and land [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 128,567 | 128,285 | 115,753 | |
Construction and land [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 128,567 | 128,285 | ||
Construction and land [Member] | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 128,220 | 127,804 | ||
Construction and land [Member] | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Construction and land [Member] | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 347 | 481 | ||
Construction and land [Member] | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Residential - first lien | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 409,402 | 437,409 | 411,213 | |
Residential - first lien | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 409,402 | 437,409 | ||
Residential - first lien | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 396,686 | 425,247 | ||
Residential - first lien | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Residential - first lien | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 12,716 | 12,162 | ||
Residential - first lien | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Residential - junior lien | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 67,430 | 74,164 | 80,303 | |
Residential - junior lien | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 67,430 | 74,164 | ||
Residential - junior lien | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 66,065 | 73,378 | ||
Residential - junior lien | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Residential - junior lien | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 1,365 | 786 | ||
Residential - junior lien | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Commercial - owner occupied | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 244,802 | 241,795 | 232,771 | |
Commercial - owner occupied | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 244,802 | 241,795 | ||
Commercial - owner occupied | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 241,501 | 241,229 | ||
Commercial - owner occupied | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 2,501 | 0 | ||
Commercial - owner occupied | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 800 | 566 | ||
Commercial - owner occupied | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Commercial - non-owner occupied | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 455,051 | 444,052 | 442,449 | |
Commercial - non-owner occupied | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 455,051 | 444,052 | ||
Commercial - non-owner occupied | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 453,361 | 442,327 | ||
Commercial - non-owner occupied | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 1,064 | 0 | ||
Commercial - non-owner occupied | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 626 | 1,725 | ||
Commercial - non-owner occupied | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Commercial Loan and Leases [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 352,999 | 372,872 | 367,856 | |
Commercial Loan and Leases [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 352,999 | 372,872 | ||
Commercial Loan and Leases [Member] | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 341,285 | 370,837 | ||
Commercial Loan and Leases [Member] | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 10,477 | 0 | ||
Commercial Loan and Leases [Member] | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 1,237 | 2,035 | ||
Commercial Loan and Leases [Member] | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Consumer | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 46,660 | 46,936 | $ 50,675 | |
Consumer | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 46,660 | 46,936 | ||
Consumer | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 46,558 | 46,809 | ||
Consumer | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Consumer | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 102 | 127 | ||
Consumer | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | 0 | ||
Paycheck Protection Program | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 193,719 | $ 193,700 | $ 0 | |
Paycheck Protection Program | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 193,719 | |||
Paycheck Protection Program | Not Classified [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 193,719 | |||
Paycheck Protection Program | Special Mention [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | |||
Paycheck Protection Program | Substandard [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | 0 | |||
Paycheck Protection Program | Doubtful [Member] | Legacy Loans [Member] | ||||
Credit Quality Indicator [Line Items] | ||||
Total loans and leases | $ 0 |
Credit Quality Assessment - Age
Credit Quality Assessment - Aged Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Apr. 27, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | $ 1,898,630 | $ 1,745,513 | $ 1,701,020 | |
Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 1,877,868 | 1,718,953 | ||
Total past due | 3,619 | 8,753 | ||
Non-accrual loans and leases | 17,143 | 17,807 | ||
Total loans and leases | 1,898,630 | 1,745,513 | ||
Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,417 | 4,309 | ||
Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,779 | 4,397 | ||
Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 423 | 47 | ||
Construction and land [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 128,567 | 128,285 | 115,753 | |
Construction and land [Member] | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 128,220 | 127,804 | ||
Total past due | 0 | 0 | ||
Non-accrual loans and leases | 347 | 481 | ||
Total loans and leases | 128,567 | 128,285 | ||
Construction and land [Member] | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Construction and land [Member] | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Construction and land [Member] | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Residential - first lien | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 409,402 | 437,409 | 411,213 | |
Residential - first lien | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 394,957 | 418,668 | ||
Total past due | 1,729 | 6,579 | ||
Non-accrual loans and leases | 12,716 | 12,162 | ||
Total loans and leases | 409,402 | 437,409 | ||
Residential - first lien | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 3,312 | ||
Residential - first lien | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,306 | 3,220 | ||
Residential - first lien | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 423 | 47 | ||
Residential - junior lien | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 67,430 | 74,164 | 80,303 | |
Residential - junior lien | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 64,873 | 71,634 | ||
Total past due | 1,192 | 1,744 | ||
Non-accrual loans and leases | 1,365 | 786 | ||
Total loans and leases | 67,430 | 74,164 | ||
Residential - junior lien | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,068 | 748 | ||
Residential - junior lien | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 124 | 996 | ||
Residential - junior lien | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Commercial - owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 244,802 | 241,795 | 232,771 | |
Commercial - owner occupied | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 244,002 | 241,062 | ||
Total past due | 0 | 167 | ||
Non-accrual loans and leases | 800 | 566 | ||
Total loans and leases | 244,802 | 241,795 | ||
Commercial - owner occupied | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Commercial - owner occupied | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 167 | ||
Commercial - owner occupied | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Commercial - non-owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 455,051 | 444,052 | 442,449 | |
Commercial - non-owner occupied | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 454,217 | 442,132 | ||
Total past due | 258 | 195 | ||
Non-accrual loans and leases | 576 | 1,725 | ||
Total loans and leases | 455,051 | 444,052 | ||
Commercial - non-owner occupied | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 76 | 195 | ||
Commercial - non-owner occupied | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 182 | 0 | ||
Commercial - non-owner occupied | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Commercial Loan and Leases [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 352,999 | 372,872 | 367,856 | |
Commercial Loan and Leases [Member] | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 351,466 | 370,877 | ||
Total past due | 296 | 35 | ||
Non-accrual loans and leases | 1,237 | 1,960 | ||
Total loans and leases | 352,999 | 372,872 | ||
Commercial Loan and Leases [Member] | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 264 | 35 | ||
Commercial Loan and Leases [Member] | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 32 | 0 | ||
Commercial Loan and Leases [Member] | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 46,660 | 46,936 | $ 50,675 | |
Consumer | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 46,414 | 46,776 | ||
Total past due | 144 | 33 | ||
Non-accrual loans and leases | 102 | 127 | ||
Total loans and leases | 46,660 | 46,936 | ||
Consumer | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 9 | 19 | ||
Consumer | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 135 | 14 | ||
Consumer | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | 0 | ||
Paycheck Protection Program | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases | 193,719 | $ 193,700 | $ 0 | |
Paycheck Protection Program | Legacy Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Accruing loans and leases current | 193,719 | |||
Total past due | 0 | |||
Non-accrual loans and leases | 0 | |||
Total loans and leases | 193,719 | |||
Paycheck Protection Program | Legacy Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
Paycheck Protection Program | Legacy Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
Paycheck Protection Program | Legacy Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $ 0 |
Credit Quality Assessment - Imp
Credit Quality Assessment - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||||
Related allowance | $ 500 | ||||
Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | $ 18,488 | $ 19,359 | $ 18,488 | $ 19,359 | 19,176 |
With an allowance recorded | 0 | 0 | 0 | 0 | 554 |
With no related allowance recorded | 18,488 | 19,359 | 18,488 | 19,359 | 18,622 |
Related allowance | 0 | 0 | 500 | ||
Unpaid principal | 20,682 | 24,283 | 20,682 | 24,283 | 22,344 |
Average balance of impaired loans | 22,556 | 26,520 | 22,598 | 26,591 | 24,970 |
Interest income recognized | 137 | 140 | 270 | 211 | 748 |
Construction and land [Member] | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 347 | 933 | 347 | 933 | 481 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 347 | 933 | 347 | 933 | 481 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 533 | 1,322 | 533 | 1,322 | 667 |
Average balance of impaired loans | 666 | 1,454 | 667 | 1,459 | 814 |
Interest income recognized | 0 | 0 | 0 | 0 | 5 |
Residential - first lien | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 13,679 | 12,530 | 13,679 | 12,530 | 13,131 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 13,679 | 12,530 | 13,679 | 12,530 | 13,131 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 14,893 | 13,818 | 14,893 | 13,818 | 14,371 |
Average balance of impaired loans | 16,026 | 15,154 | 16,052 | 15,171 | 15,586 |
Interest income recognized | 93 | 86 | 204 | 138 | 400 |
Residential - junior lien | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 1,365 | 914 | 1,365 | 914 | 786 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 1,365 | 914 | 1,365 | 914 | 786 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 1,564 | 1,135 | 1,564 | 1,135 | 986 |
Average balance of impaired loans | 1,758 | 1,370 | 1,765 | 1,385 | 1,338 |
Interest income recognized | 21 | 26 | 29 | 33 | 106 |
Commercial - owner occupied | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 800 | 225 | 800 | 225 | 566 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 800 | 225 | 800 | 225 | 566 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 811 | 246 | 811 | 246 | 583 |
Average balance of impaired loans | 816 | 247 | 817 | 247 | 594 |
Interest income recognized | 5 | 8 | 5 | 8 | 30 |
Commercial - non-owner occupied | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 576 | 2,608 | 576 | 2,608 | 1,725 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 576 | 2,608 | 576 | 2,608 | 1,725 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 615 | 4,363 | 615 | 4,363 | 2,023 |
Average balance of impaired loans | 647 | 4,457 | 648 | 4,480 | 2,105 |
Interest income recognized | 7 | 6 | 11 | 13 | 11 |
Commercial Loan and Leases [Member] | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 1,619 | 1,862 | 1,619 | 1,862 | 2,360 |
With an allowance recorded | 0 | 0 | 0 | 0 | 554 |
With no related allowance recorded | 1,619 | 1,862 | 1,619 | 1,862 | 1,806 |
Related allowance | 0 | 0 | 0 | 0 | 500 |
Unpaid principal | 2,161 | 3,097 | 2,161 | 3,097 | 3,584 |
Average balance of impaired loans | 2,538 | 3,525 | 2,544 | 3,536 | 4,392 |
Interest income recognized | 11 | 10 | 21 | 14 | 195 |
Consumer | Legacy Loans [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded investment | 102 | 287 | 102 | 287 | 127 |
With an allowance recorded | 0 | 0 | 0 | 0 | 0 |
With no related allowance recorded | 102 | 287 | 102 | 287 | 127 |
Related allowance | 0 | 0 | 0 | 0 | 0 |
Unpaid principal | 105 | 302 | 105 | 302 | 130 |
Average balance of impaired loans | 105 | 313 | 105 | 313 | 141 |
Interest income recognized | $ 0 | $ 4 | $ 0 | $ 5 | $ 1 |
Credit Quality Assessment - TDR
Credit Quality Assessment - TDR Loans (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 3 | 4 |
Non-Accrual Status | $ 675 | $ 813 |
Number of Loans | loan | 4 | 4 |
Accrual Status | $ 1,326 | $ 1,335 |
Total TDRs | $ 2,001 | $ 2,148 |
Construction and land [Member] | ||
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 1 | |
Non-Accrual Status | $ 125 | |
Number of Loans | loan | 0 | |
Accrual Status | $ 0 | |
Total TDRs | $ 125 | |
Residential Real Estate First Lien [Member] | ||
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Non-Accrual Status | $ 261 | $ 274 |
Number of Loans | loan | 2 | 2 |
Accrual Status | $ 963 | $ 968 |
Total TDRs | $ 1,224 | $ 1,242 |
Commercial Loan and Leases [Member] | ||
Trouble Debt Restructured Loans [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Non-Accrual Status | $ 414 | $ 414 |
Number of Loans | loan | 2 | 2 |
Accrual Status | $ 363 | $ 367 |
Total TDRs | $ 777 | $ 781 |
Credit Quality Assessment - T_2
Credit Quality Assessment - TDR Modifications (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | $ 2,001 | $ 2,148 | |
Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Construction and land And Extension Or Other modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 125 | ||
Construction and land And Extension Or Other modification [Member] | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | ||
Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 363 | 367 | |
Commercial Loans And Extension Or Other Modification [Member] | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Commercial Loans And Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 414 | 414 | |
Commercial Loans And Forbearances Member | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 1,224 | 1,242 | |
Residential Real Estate First Lien and Extension Or Other Modification [Member] | Allowance for Losses on Finance Receivables [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Nonperforming Financial Instruments [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 675 | 813 | |
Nonperforming Financial Instruments [Member] | Construction and land And Extension Or Other modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 125 | ||
Nonperforming Financial Instruments [Member] | Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Nonperforming Financial Instruments [Member] | Commercial Loans And Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 414 | 414 | |
Nonperforming Financial Instruments [Member] | Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 261 | 274 | |
Performing Financial Instruments [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 1,326 | 1,335 | |
Performing Financial Instruments [Member] | Construction and land And Extension Or Other modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | ||
Performing Financial Instruments [Member] | Commercial Loans And Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 363 | 367 | |
Performing Financial Instruments [Member] | Commercial Loans And Forberances [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | $ 0 | |
Performing Financial Instruments [Member] | Commercial Loans And Forbearances Member | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | 0 | 0 | |
Performing Financial Instruments [Member] | Residential Real Estate First Lien and Extension Or Other Modification [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total troubled debt restructured loans | $ 963 | $ 968 |
Credit Quality Assessment - Add
Credit Quality Assessment - Additional Information (Details) - USD ($) $ in Thousands | Aug. 06, 2020 | May 08, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Quality Indicator [Line Items] | ||||||||
Delinquent Loans, Outstanding Nonaccrual Status | $ 17,600 | $ 17,900 | ||||||
Non-Accrual Delinquent Loans Outstanding, Percentage | 0.93% | 1.00% | ||||||
Financing Receivable, Recorded Investment, Nonaccrual Loans | $ 17,100 | $ 17,800 | ||||||
Impaired Financing Receivable Interest Income Non Accrual Method | $ 534 | 338 | $ 534 | |||||
Additional allowance | 257 | 65 | ||||||
Loans modified, amount | 2,001 | 2,148 | ||||||
Allowance for credit losses | 8,754 | 16,356 | 9,120 | $ 13,384 | 10,401 | $ 9,873 | ||
Real Estate Owned, Transfer to Real Estate Owned | 51 | 375 | ||||||
Loans modified through payments deferrals | $ 159,000 | $ 347,000 | $ 291,400 | |||||
Percentage of loan modified through payments deferrals | 8.40% | 19.70% | 17.10% | |||||
Gains (Losses) on Sales of Other Real Estate | $ (28) | |||||||
Loss on sale of other real estate held | (405) | |||||||
Performing Financial Instruments [Member] | ||||||||
Credit Quality Indicator [Line Items] | ||||||||
Loans modified, amount | 1,326 | 1,335 | ||||||
Residential - first lien | ||||||||
Credit Quality Indicator [Line Items] | ||||||||
Allowance for credit losses | $ 1,372 | 2,714 | $ 1,790 | 2,204 | 2,256 | $ 1,170 | ||
Gains (Losses) on Sales of Other Real Estate | 28,000 | |||||||
Residential first liens | ||||||||
Credit Quality Indicator [Line Items] | ||||||||
Mortgage Loans in Process of Foreclosure, Amount | 2,300 | |||||||
Commercial real Estate Loan [Member] | ||||||||
Credit Quality Indicator [Line Items] | ||||||||
Mortgage Loans in Process of Foreclosure, Amount | 42 | |||||||
Paycheck Protection Program | ||||||||
Credit Quality Indicator [Line Items] | ||||||||
Allowance for credit losses | $ 0 | $ 0 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Derivatives and Hedging Activities | ||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ (9) | $ (6) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2020 |
Interest Rate Swap with borrowers | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 2,853 | $ 2,748 |
Derivative, Gain on Derivative | 217 | 404 |
Derivative, Loss on Derivative | 0 | 0 |
Interest Rate Swap with counterparty | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 2,853 | 2,748 |
Derivative, Gain on Derivative | 0 | 0 |
Derivative, Loss on Derivative | $ 228 | $ 423 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill and Other Intangible Assets | |
Goodwill impairment | $ (34,500) |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 8,469 | $ 7,090 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,135 | 16,135 |
Accumulated Amortization | 7,666 | 9,045 |
Net Carrying Amount | $ 8,469 | $ 7,090 |
Weighted Average Remaining Life (in Years) | 3 years 8 months 12 days | 3 years 2 months 12 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Other Intangible Assets | ||
2020 | $ 1,295 | |
2021 | 2,326 | |
2022 | 1,915 | |
2023 | 1,298 | |
2024 | 256 | |
Total amortizing intangible assets | $ 7,090 | $ 8,469 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | |
Business Acquisition [Line Items] | ||||
Number of reporting units | item | 1 | |||
Goodwill, Impairment Loss | $ 34,500 | $ 0 | $ 34,500 | $ 0 |
Non Interest Expense [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill, Impairment Loss | $ 34,500 |
Leases - Operating leases (Deta
Leases - Operating leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases | |||
Operating leases ROU | $ 15,312 | $ 14,092 | |
Total operating lease liabilities | $ 15,805 | $ 14,507 | $ 18,000 |
Leases - Lease expenses (Detail
Leases - Lease expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases | ||||
Operating lease cost | $ 420 | $ 530 | $ 784 | $ 1,080 |
Sublease income | (176) | (108) | (344) | (293) |
Amortization of ROU assets | 32 | 82 | 77 | 82 |
Total | $ 276 | $ 504 | $ 517 | $ 869 |
Leases - Lease liability maturi
Leases - Lease liability maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases | |||
2020 | $ 855 | ||
2021 | 1,662 | ||
2022 | 1,520 | ||
2023 | 1,372 | ||
2024 | 1,170 | ||
Thereafter | 13,033 | ||
Total future lease payments | 19,612 | ||
Discount of cash flows | (3,807) | ||
Present value on net future lease payments | $ 15,805 | $ 14,507 | $ 18,000 |
Weighted average remaining term (in years) | 6 years 5 months 19 days | ||
Weighted average discount rate (in percentage) | 2.89% |
Leases - Additional information
Leases - Additional information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases | |||
Lessee, Operating Lease, Renewal Term | 10 years | ||
Operating Lease, Expense | $ 3,600 | ||
Operating Lease, Liability | $ 15,805 | $ 14,507 | $ 18,000 |
Increase in ROU assets | $ 2,000 |
Deposits - Composition of Depos
Deposits - Composition of Deposits and the Related Percentage Mix of Total Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deposits | ||
Noninterest-bearing demand | $ 671,598 | $ 468,975 |
Interest-bearing checking | 186,768 | 183,447 |
Money market accounts | 383,031 | 360,711 |
Savings | 146,148 | 130,141 |
Certificates of deposit $250 and over | 65,769 | 77,782 |
Certificates of deposit under $250 | 377,360 | 493,309 |
Total deposits | $ 1,830,674 | $ 1,714,365 |
Percentage of Noninterest-bearing demand | 37.00% | 27.00% |
Percentage of Interest-bearing checking | 10.00% | 11.00% |
Percentage of Money market accounts | 21.00% | 21.00% |
Percentage of Savings | 7.00% | 7.00% |
Percentage of Certificates of deposit $250 and over | 4.00% | 5.00% |
Percentage of Certificates of deposit under $250 | 21.00% | 29.00% |
Percentage of Total deposits | 100.00% | 100.00% |
Stock Options and Stock Award_2
Stock Options and Stock Awards - Stock Options (Details) - Employee Stock Option [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Shares, Beginning Balance | 25,000 | 15,268 |
Shares, Granted | 0 | 25,000 |
Shares, Exercised | 0 | (13,418) |
Shares, Forfeited | 0 | (1,850) |
Shares, Ending Balance | 25,000 | 25,000 |
Shares, Exercisable at period end | 8,337 | 0 |
Weighted Average Exercise Price, Beginning Balance | $ 14.54 | $ 8.76 |
Weighted Average Exercise Price, Granted | 0 | 14.54 |
Weighted Average Exercise Price, Exercised | 0 | 8.58 |
Weighted Average Exercise Price, Forfeited | 0 | 10.10 |
Weighted Average Exercise Price, Ending Balance | 14.54 | 14.54 |
Weighted Average Exercise Price, Exercisable at period end | $ 14.54 | 14.54 |
Weighted average fair value of options granted during the year | $ 5.83 |
Stock Options and Stock Award_3
Stock Options and Stock Awards - RSU (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Shares, Beginning Balance | 11,032 | 9,731 |
Shares, Granted | 156,947 | 26,500 |
Shares, Vested | (834) | (6,699) |
Shares, Forfeited | 0 | (18,500) |
Shares, Ending Balance | 167,145 | 11,032 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ 17.48 | $ 17.29 |
Weighted Average Grant Date Fair Value, Granted | 14.87 | 15.16 |
Weighted Average Grant Date Fair Value, Vested | 19.85 | 16.13 |
Weighted Average Grant Date Fair Value, Forfeited | 14.54 | |
Weighted Average Grant Date Fair Value, Ending Balance | $ 15.02 | $ 17.48 |
Stock Options and Stock Award_4
Stock Options and Stock Awards - RSU Compensation Expense (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 77 |
Restricted Stock Units (RSUs) [Member] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 2,043 |
Restricted Stock Units (RSUs) [Member] | 2020 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 269 |
Restricted Stock Units (RSUs) [Member] | 2021 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 509 |
Restricted Stock Units (RSUs) [Member] | 2022 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 480 |
Restricted Stock Units (RSUs) [Member] | 2023 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 390 |
Restricted Stock Units (RSUs) [Member] | 2024 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 363 |
Restricted Stock Units (RSUs) [Member] | 2025 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 32 |
Stock Options and Stock Award_5
Stock Options and Stock Awards - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allocated Share-based Compensation Expense | $ 138 | $ 62 | $ 378 | $ 174 |
Director [Member] | ||||
Allocated Share-based Compensation Expense | 0 | 0 | 137 | 62 |
Restricted Stock Units (RSUs) [Member] | ||||
Allocated Share-based Compensation Expense | 126 | 62 | 217 | 112 |
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | $ 12 | $ 0 | $ 24 | $ 0 |
Stock Options and Stock Award_6
Stock Options and Stock Awards - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Proceeds from Stock Options Exercised | $ 0 | $ 105 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable Fair Market Value | $ 10.62 | $ 16.88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ 0 | $ 59 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 77 | |||
Share-based Payment Arrangement, Nonemployee [Member] | ||||
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | 4,802 | 8,151 | ||
Employee Stock Option [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 417,844 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 25,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 2,043 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 18,500 | 156,947 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 15.00% | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Amount | $ 468,000 | $ 540,000 | ||
Allocated Share-based Compensation Expense | $ 138,000 | $ 62,000 | $ 378,000 | 174,000 |
2017 Employee Stock Purchase Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | 250,000 | ||
Allocated Share-based Compensation Expense | $ 0 | 19,000 | ||
Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Description | Under the defined benefit SERP, the CEO will receive $150,000 each year for 15 years after attainment of the Normal Retirement Age (as defined in the SERP). | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 37,000 | $ 105,000 | ||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 4.00% |
Net (Loss) Income per Common _3
Net (Loss) Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net (Loss) Income per Common Share | |||||
Net (loss) income available to common stockholders (numerator) | $ (29,409) | $ 2,088 | $ 6,344 | $ (26,066) | |
BASIC | |||||
Basic average common shares outstanding (denominator) | 18,715,669 | 19,061,164 | 19,056,953 | 18,791,378 | |
Basic (loss) income per common share | $ (1.57) | $ 0.11 | $ 0.33 | $ (1.39) | $ 0.33 |
DILUTED | |||||
Average common shares outstanding | 18,715,669 | 19,061,164 | 19,056,953 | 18,791,378 | |
Dilutive effect of common stock equivalents | 0 | 6,460 | 14,367 | 0 | |
Diluted average common shares outstanding (denominator) | 18,715,669 | 19,067,624 | 19,071,320 | 18,791,378 | |
Diluted (loss) income per common share | $ (1.57) | $ 0.11 | $ 0.33 | $ (1.39) | $ 0.33 |
Because the Company reported a loss for both 2020 periods, common stock equivalents were excluded from the calculation of diluted average shares outstanding, as their inclusion would have resulted in a lower diluted loss per share. | 59,466 | 0 | 0 | 81,761 | |
Common stock equivalents outstanding that are anti-dilutive and thus excluded from calculation of diluted number of shares presented above | 25,000 | 25,000 | 25,000 | 25,000 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Percentage of Capital Conservation Buffer | 2.50% | |
Howard Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual amount | $ 256,374 | $ 238,384 |
Total capital (to risk-weighted assets) Actual ratio | 14.00% | 12.86% |
Total capital (to risk-weighted assets) For capital adequacy purposes amount | $ 146,503 | $ 148,314 |
Total capital (to risk-weighted assets) For capital adequacy purposes ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 183,129 | $ 185,392 |
Total capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 10.00% | 10.00% |
Common equity tier 1 capital (to risk-weighted assets) Actual amount | $ 240,018 | $ 227,983 |
Common equity tier 1 capital (to risk-weighted assets) Actual ratio | 13.11% | 12.30% |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 82,408 | $ 83,427 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 119,034 | $ 120,505 |
Common equity tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets) Actual amount | $ 240,018 | $ 227,983 |
Tier 1 capital (to risk-weighted assets) Actual ratio | 13.11% | 12.30% |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 109,877 | $ 111,235 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 146,503 | $ 148,314 |
Tier 1 capital (to risk-weighted assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets) Actual amount | $ 240,018 | $ 227,983 |
Tier 1 capital (to average assets) Actual ratio | 10.33% | 10.43% |
Tier 1 capital (to average assets) For capital adequacy purposes amount | $ 92,931 | $ 87,434 |
Tier 1 capital (to average assets) For capital adequacy purposes ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To be well capitalized under the FDICIA prompt corrective action provisions amount | $ 116,163 | $ 109,293 |
Tier 1 capital (to average assets) To be well capitalized under the FDICIA prompt corrective action provisions ratio | 5.00% | 5.00% |
Howard Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual amount | $ 258,943 | $ 247,761 |
Total capital (to risk-weighted assets) Actual ratio | 14.09% | 13.14% |
Total capital (to risk-weighted assets) For capital adequacy purposes amount | $ 147,022 | $ 150,872 |
Total capital (to risk-weighted assets) For capital adequacy purposes ratio | 8.00% | 8.00% |
Common equity tier 1 capital (to risk-weighted assets) Actual amount | $ 214,249 | $ 209,119 |
Common equity tier 1 capital (to risk-weighted assets) Actual ratio | 11.66% | 11.09% |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 82,700 | $ 84,866 |
Common equity tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 capital (to risk-weighted assets) Actual amount | $ 214,249 | $ 209,119 |
Tier 1 capital (to risk-weighted assets) Actual ratio | 11.66% | 11.09% |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes amount | $ 110,267 | $ 113,154 |
Tier 1 capital (to risk-weighted assets) For capital adequacy purposes ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets) Actual amount | $ 214,249 | $ 209,119 |
Tier 1 capital (to average assets) Actual ratio | 9.18% | 9.55% |
Tier 1 capital (to average assets) For capital adequacy purposes amount | $ 93,308 | $ 87,599 |
Tier 1 capital (to average assets) For capital adequacy purposes ratio | 4.00% | 4.00% |
Contingencies (Details)
Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)lawsuit | |
Contingencies | |
Number of lawsuits for mortgage origination claims | lawsuit | 0 |
Accrued liability | $ | $ 1 |
Fair Value - Fair Value Financi
Fair Value - Fair Value Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | $ 276,889 | $ 215,505 | |
Loans held for sale | 0 | 30,710 | |
Loans held for investment | 3,346 | 997 | |
Interest rate swap assets | 404 | 217 | |
Liabilities | |||
Interest rate swap liabilities | 423 | 228 | |
US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 79,615 | 67,312 | |
Collateralized Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 191,826 | 142,699 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | 30,710 | ||
Loans held for investment | 3,346 | 997 | |
Rate lock commitments | 60 | ||
Interest rate swap assets | 404 | 217 | |
Liabilities | |||
Interest rate swap liabilities | 423 | 228 | |
Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 67,312 | ||
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 191,826 | 142,699 | |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 5,448 | 5,494 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Interest rate swap assets | 0 | 0 | |
Liabilities | |||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | 0 | ||
Loans held for investment | 0 | 0 | |
Rate lock commitments | 0 | ||
Interest rate swap assets | 0 | 0 | |
Liabilities | |||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 3,346 | 997 | |
Interest rate swap assets | 404 | 217 | |
Liabilities | |||
Interest rate swap liabilities | 423 | 228 | |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 79,615 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | 30,710 | ||
Loans held for investment | 3,346 | 997 | |
Rate lock commitments | 0 | ||
Interest rate swap assets | 404 | 217 | |
Liabilities | |||
Interest rate swap liabilities | 423 | 228 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 67,312 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 191,826 | 142,699 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 5,448 | 5,494 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Rate lock commitments | 0 | 60 | $ 126 |
Interest rate swap assets | 0 | 0 | |
Liabilities | |||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | 0 | ||
Loans held for investment | 0 | 0 | |
Rate lock commitments | 60 | ||
Interest rate swap assets | 0 | 0 | |
Liabilities | |||
Interest rate swap liabilities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities | $ 0 | $ 0 |
Fair Value - Level 3 (Details)
Fair Value - Level 3 (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Balance, beginning of period | $ 60 | $ 126 |
Net losses included in realized and unrealized gains on mortgage banking activity in noninterest income | (60) | (66) |
Balance, end of period | $ 0 | $ 60 |
Fair Value - Assets Under Fair
Fair Value - Assets Under Fair Value Option (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Loans held for investment Fair value | $ 3,346 | $ 997 |
Loans Held For Sale [Member] | ||
Carrying Fair Value Amount, Loans held for sale | 30,710 | |
Aggregate Unpaid Principal, Loans held for sale | 29,969 | |
Difference, Loans held for sale | 741 | |
Loans Held For Investment [Member] | ||
Loans held for investment Fair value | 3,346 | 997 |
Aggregate Unpaid Principal Loans held for Investment | 3,283 | 966 |
Difference, Loans held for investment | $ 63 | $ 31 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 2,137 | $ 3,098 |
Impaired loans | 1,889,696 | 1,735,013 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 3,500 | 4,600 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 18,676 | |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 2,137 | 3,098 |
Impaired loans | 18,488 | |
Fair Value, Measurements, Nonrecurring [Member] | Construction and land [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 347 | 481 |
Fair Value, Measurements, Nonrecurring [Member] | Residential - first lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 13,679 | 13,131 |
Fair Value, Measurements, Nonrecurring [Member] | Residential - junior lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,365 | 786 |
Fair Value, Measurements, Nonrecurring [Member] | Commercial - owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 800 | 566 |
Fair Value, Measurements, Nonrecurring [Member] | Commercial - non-owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 576 | 1,725 |
Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan and Leases [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,619 | 1,860 |
Fair Value, Measurements, Nonrecurring [Member] | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 102 | 127 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction and land [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - first lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - junior lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - non-owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan and Leases [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction and land [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - first lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - junior lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - non-owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan and Leases [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,889,696 | 1,735,013 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 18,676 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 2,137 | 3,098 |
Impaired loans | 18,488 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Construction and land [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 347 | 481 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - first lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 13,679 | 13,131 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Residential - junior lien | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,365 | 786 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 800 | 566 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial - non-owner occupied | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 576 | 1,725 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Commercial Loan and Leases [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,619 | 1,860 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 102 | $ 127 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Available for sale securities, Carrying Value | $ 276,889 | $ 215,505 |
Held to maturity securities, Carrying Value | 7,250 | 7,750 |
Nonmarketable equity securities, Carrying Value | 12,592 | 14,152 |
Loans held for sale, Carrying Value | 0 | 30,710 |
Loans held for investment, Carrying Value | 3,346 | 997 |
Rate lock commitments, Carrying Value | 60 | |
Loans and leases, Carrying Value | 1,878,928 | 1,734,115 |
Interest rate swap, Carrying Value | 404 | 217 |
Available for sale securities | 276,889 | 215,505 |
Held to maturity securities | 7,195 | 7,897 |
Nonmarketable equity securities | 12,592 | 14,152 |
Loans held for sale | 30,710 | |
Loans held for investment | 3,346 | 997 |
Rate lock commitments | 60 | |
Loans and leases, Fair value | 1,889,696 | 1,735,013 |
Interest rate swap | 404 | 217 |
Financial Liabilities | ||
Deposits, Carrying Value | 1,830,674 | 1,714,365 |
Customer repos and fed funds purchased , carrying value | 37,834 | 6,127 |
Short-term borrowings, Carrying Value | 246,000 | 285,000 |
Long-term borrowings, Carrying Value | 28,339 | 28,241 |
Interest rate swap, Carrying Value | 423 | 228 |
Deposits, Fair value | 1,828,613 | 1,713,081 |
Customer repos and fed funds purchased , Fair value | 37,834 | 6,127 |
FHLB & other short-term borrowings | 249,079 | 288,731 |
Subordinated debt | 28,339 | 28,241 |
Interest rate swap, Fair Value | 423 | 228 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Assets | ||
Loans and leases, Fair value | 18,676 | |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets | ||
Available for sale securities | 0 | 0 |
Held to maturity securities | 0 | 0 |
Nonmarketable equity securities | 0 | 0 |
Loans held for sale | 0 | |
Loans held for investment | 0 | 0 |
Rate lock commitments | 0 | |
Loans and leases, Fair value | 0 | 0 |
Interest rate swap | 0 | 0 |
Financial Liabilities | ||
Deposits, Fair value | 0 | 0 |
FHLB & other short-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest rate swap, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets | ||
Available for sale securities | 276,889 | 215,505 |
Held to maturity securities | 0 | 0 |
Nonmarketable equity securities | 12,592 | 14,152 |
Loans held for sale | 30,710 | |
Loans held for investment | 3,346 | 997 |
Rate lock commitments | 0 | |
Loans and leases, Fair value | 0 | 0 |
Interest rate swap | 404 | 217 |
Financial Liabilities | ||
Deposits, Fair value | 1,828,613 | 1,713,081 |
Customer repos and fed funds purchased , Fair value | 5,321 | 6,127 |
FHLB & other short-term borrowings | 249,079 | 288,731 |
Subordinated debt | 28,339 | 28,241 |
Interest rate swap, Fair Value | 423 | 228 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets | ||
Available for sale securities | 0 | 0 |
Held to maturity securities | 7,195 | 7,897 |
Nonmarketable equity securities | 0 | 0 |
Loans held for sale | 0 | |
Loans held for investment | 0 | 0 |
Rate lock commitments | 60 | |
Loans and leases, Fair value | 1,889,696 | 1,735,013 |
Interest rate swap | 0 | 0 |
Financial Liabilities | ||
Deposits, Fair value | 0 | 0 |
FHLB & other short-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest rate swap, Fair Value | $ 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Financial Assets | ||
Loans and leases, Fair value | $ 18,676 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | $ 2,137 | $ 3,098 | |
Impaired Financing Receivable, Related Allowance | 500 | ||
Other Real Estate, Period Increase (Decrease) | 257 | $ 65 | |
Loans Held For Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | (274) | 290 | |
Loans Held For Investment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Option, Changes in Fair Value, Gain (Loss) | 63 | $ 31 | |
Other Real Estate Owned [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other Real Estate | 3,500 | 4,600 | |
Other Real Estate, Valuation Adjustments | $ 1,400 | $ 1,500 | |
Selling cost (as a percent) | 9.5 |